HomeMost PopularInvesting HEICO (HEI) Q4 Earnings Surpass Estimates,...

HEICO (HEI) Q4 Earnings Surpass Estimates, Sales Rise Y/Y HEI Soars Past Earnings Estimates, Rings in Sales Surge

Actionable Trade Ideas

always free

HEICO Corporationโ€™s HEI has outperformed expectations, as its fourth-quarter fiscal 2023 adjusted earnings per share (EPS) of 84 cents soared past the Zacks Consensus Estimate of 70 cents by 20%. The bottom line also witnessed a robust 20% jump from the reported actual in the prior-year period.

The company reported GAAP earnings of 74 cents compared with 70 cents in the fourth quarter of fiscal 2022.

For the entire fiscal 2023, HEI reported a stellar earnings figure of $3.04 per share.

Bumper Sales

HEI witnessed a whopping 53.6% year-over-year surge in net sales, amounting to $936.4 million in the reported quarter. This staggering rise also surpassed the Zacks Consensus Estimate of $882 million by a solid 6.1%.

The fiscal fourth quarterโ€™s consolidated organic net sales growth of 12% was principally driven by continued strong demand for HEIโ€™s commercial aerospace products and services, coupled with contributions from its fiscal 2023 and 2022 acquisitions.

For fiscal 2023, the company reported net sales of $2.97 billion, up from $2.21 billion at the end of fiscal 2022.

HEICO Corporation Price, Consensus and EPS Surprise

ย 

Heico Corporation Price, Consensus and EPS Surprise

Heico Corporation price-consensus-eps-surprise-chart | Heico Corporation Quote

ย 

Operational Update

HEIโ€™s total costs and expenses shot up by 61.3% year over year to $747 million in the quarter under review, driven by higher cost of sales and SG&A expenses.

Interest expense of $43.2 million came as a shock when compared with $3.2 million in the prior-year quarter.

Segmental Performance

Flight Support Group: Net sales soared 74% year over year to $601.7 million, driven by substantial organic growth of 20% and the impact from its Wencor acquisition.

The operating income also surged by an impressive 47.2% year over year to $114.6 million, attributable to solid net sales growth and an improved gross profit margin.

Electronic Technologies Group: The segmentโ€™s net sales increased by 27.6% to $342.5 million, mainly driven by the benefits from its fiscal 2023 and 2022 acquisitions, and a 6% organic growth.

The segmentโ€™s operating income witnessed an 8.2% year-over-year surge, reaching $86.4 million, primarily propelled by higher net sales volume.

Financial Details

As of Oct 31, 2023, HEIโ€™s cash and cash equivalents stood at $171 million, compared with $139.5 million as of Oct 31, 2022.

Cash flow provided by operating activities was $448.7 million during the fiscal year ending Oct 31, 2023, indicating a 4.1% decline from the prior-year periodโ€™s level.

HEICO reported long-term debt (net of current maturities) of $2,460.3 million at the end of fiscal 2023, up from $288.6 million as of 2022-end.

Zacks Rank

HEI currently holds a Zacks Rank #2 (Buy). Check out the complete list of todayโ€™s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases

Curtiss-Wright Corporation CW reported third-quarter 2023 adjusted earnings per share (EPS) of $2.54, surpassing the Zacks Consensus Estimate by 5%. The bottom line also witnessed a hefty 22.7% increase from the year-ago quarterโ€™s level.

In the quarter under review, the companyโ€™s net sales of $724.3 million went up by 14.9% year over year, also surpassing the Zacks Consensus Estimate.

Teledyne Technologies Inc. TDY reported third-quarter 2023 adjusted earnings of $5.05 per share, beating the Zacks Consensus Estimate by 6.3%. The bottom line also improved by 11.2% from the year-ago quarter.

Total sales were $1,402.5 million, which, although missed the Zacks Consensus Estimate, still grew by 2.9% from the year-ago quarter.

TransDigm Group Incorporated TDG reported fourth-quarter fiscal 2023 adjusted earnings of $8.03 per share, surpassing the Zacks Consensus Estimate by 6.5%. Net sales amounted to $1,852 million, up 22.6% from the prior-year period.

Are you eager to get the jump on the 10 top stock picks for 2024 from Zacks? Our Director of Research, Sheraz Mian, is combing through 4,400 companies to handpick the standout tickers. Donโ€™t let January 2 pass you by without nabbing the chance to own these stocks when theyโ€™re up for grabs.

Be First to New Top 10 Stocks >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

To read this article on Zacks.com click here

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.