HEICO (HEI) Q1 Earnings Surpass Estimates, Sales Rise Y/Y
HEICO Corporation’s HEI first-quarter fiscal 2024 earnings per share (EPS) of 82 cents beat the Zacks Consensus Estimate of 73 cents by 12.3%. The bottom line also improved 22.4% from the prior-year quarter’s 67 cents.
Total Sales
The company’s net sales increased 44.4% year over year to $896.4 million in the reported quarter. Total sales also beat the Zacks Consensus Estimate of $875 million by 2.4%.
The year-over-year upside was driven by increased sales volume from both the Flight Support Group and Electric Technologies Group segments.
Heico Corporation Price, Consensus and EPS Surprise
Heico Corporation price-consensus-eps-surprise-chart | Heico Corporation Quote
Operational Update
HEICO’s cost of sales increased 45.7% year over year to $549.6 million in the quarter under review. The company’s selling, general and administrative expenses increased 45.6% to $166.6 million.
Interest expense of $38.6 million skyrocketed from $6.1 million in the prior-year quarter.
Segmental Performance
Flight Support Group: Net sales from this segment surged 66.6% year over year to $618.7 million. This rise was driven by strong organic growth of 12% and the impact from its fiscal 2023 acquisitions.
The segment’s operating income soared 62.8% year over year to $136.1 million. This increase was due to solid net sales growth.
Electronic Technologies Group: The segment’s net sales increased 12.1% to $285.9 million, primarily driven by benefits from its fiscal 2023 acquisitions and increased organic net sales of aerospace products.
The segment’s operating income fell 2.1% year over year to $55.3 million, primarily due to a less favorable product sales mix and an increase in new product research and development expenses.
Financial Details
As of Jan 31, 2024, HEI’s cash and cash equivalents totaled $196.3 million compared with $171 million as of Oct 31, 2023.
Cash flow provided by operating activities was $111.7 million during the three months ending Jan 31, 2024, implying a 45.6% rise from the prior-year period’s level.
HEICO reported long-term debt (net of current maturities) of $2.50 billion at the end of Jan 31, 2024, up from $2.46 billion as of Oct 31, 2023.
Zacks Rank
HEICO currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Curtiss-Wright Corporation CW reported fourth-quarter adjusted earnings per share (EPS) of $3.16, which surpassed the Zacks Consensus Estimate of $2.92 by 8.2%. The bottom line improved 8.2% from the year-ago quarter’s level of $2.92.
In the quarter under review, the company’s net sales of $785.8 million went up 3.7% year over year. Also, the top line surpassed the Zacks Consensus Estimate of $737 million by 6.6%.
Kratos Defense & Security Solutions, Inc. KTOS reported fourth-quarter 2023 adjusted earnings of 12 cents per share, up 50% from 8 cents reported in the prior-year quarter. The bottom line also surpassed the Zacks Consensus Estimate of 8 cents by 50%.
Total revenues were $273.8 million, which surpassed the Zacks Consensus Estimate of $252 million by 8.6%. The figure also increased 9.8% from $249.3 million recorded in the year-ago quarter.
Teledyne Technologies Inc. TDY reported fourth-quarter 2023 adjusted earnings of $5.44 per share, which beat the Zacks Consensus Estimate of $5.06 by 7.5%. The bottom line also improved 10.1% from $4.94 recorded in the year-ago quarter.
Total sales were $1,425 million, which missed the Zacks Consensus Estimate of $1,445.6 million by 1.4%. The top line, however, grew 0.5% from $1,418.2 million reported in the year-ago quarter.
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