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

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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


Heico Corporation Price, Consensus and EPS Surprise

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


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.

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

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