It has been about a month since the last earnings report for Heico Corporation (HEI Quick QuoteHEI - Free Report) . Shares have lost about 3.7% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Heico due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

HEICO's Q4 Earnings Beat Estimates, Sales Increase Year Over Year

HEICO Corporation’s fourth-quarter fiscal 2024 earnings per share (EPS) of 99 cents beat the Zacks Consensus Estimate of 97 cents by 2.1%. The bottom line also improved 33.8% from the prior-year quarter’s 74 cents.

For fiscal 2024, the company reported adjusted earnings of $3.67 per share, which indicates growth of 26.1% from $2.91 at the end of fiscal 2023.

HEI’s Total Sales

The company’s net sales increased 8.3% year over year to $1.01 billion. However, the figure missed the Zacks Consensus Estimate of $1.04 billion by 2.5%.

The year-over-year upside was driven by record operating results from the Flight Support Group segment as well as strong contributions from HEI’s fiscal 2023 and 2024 acquisitions.

For fiscal 2024, the company reported net sales of $3.86 billion, which indicates growth of 30% from $2.97 billion at the end of fiscal 2023.

HEICO’s Operational Update

HEICO’s cost of sales increased 8.4% year over year to $620 million.

The company’s selling, general and administrative expenses rose 0.01% to $175.3 million.

Interest expenses declined 18.5% to $35.4 million from $43.4 million in the prior-year quarter.

Segmental Performance

Flight Support Group: Net sales from this segment surged 15% year over year to $691.8 million. This rise was driven by strong organic growth of 12% and the positive impact of its fiscal 2023 and 2024 acquisitions.

The segment’s operating income soared 34.8% year over year to $154.5 million. This increase was due to solid net sales growth, decreased acquisition costs and an improved gross profit margin.

Electronic Technologies Group: The segment’s net sales decreased 1.8% to $336.2 million due to lower net sales of defense and electronics products.

The segment’s operating income declined 5.3% year over year to $81.8 million, due to a less favorable gross profit margin caused by the decreased net sales of defense and electronic products.

HEI’s Financial Details

As of Oct. 31, 2024, HEI’s cash and cash equivalents totaled $162.1 million compared with $171 million as of Oct. 31, 2023.

Cash flow provided by operating activities was $672.4 million during fiscal 2024, reflecting a 49.8% rise from the prior-year period’s level.

HEICO reported a long-term debt (net of current maturities) of $2.23 billion as of Oct. 31, 2024, down from $2.46 billion as of Oct. 31, 2023.

How Have Estimates Been Moving Since Then?

It turns out, estimates review flatlined during the past month.

VGM Scores

At this time, Heico has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Heico has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.