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HEICO's Q1 Earnings Surpass Estimates, Sales Increase Y/Y

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HEICO Corporation’s (HEI - Free Report) first-quarter fiscal 2025 earnings per share (EPS) of $1.20 beat the Zacks Consensus Estimate of 93 cents by 29%. The bottom line also improved 46.3% from the prior-year quarter’s 82 cents.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The year-over-year improvement in the bottom line can be attributed to robust sales and higher operating income from the prior-year quarter. The improvement was also boosted by a discrete income tax benefit from stock option exercises.

HEI’s Total Sales

The company’s net sales increased 14.9% year over year to $1.03 billion. The figure also beat the Zacks Consensus Estimate of $0.97 billion by 6.1%.

The year-over-year upside was driven by increased demand across the Flight Support Group's product lines and for the defense, space and aerospace products of the Electronic Technologies Group.

Heico Corporation Price, Consensus and EPS Surprise

Heico Corporation Price, Consensus and EPS Surprise

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

HEICO’s Operational Update

HEICO’s cost of sales increased 13.6% year over year to $624.6 million.

The company’s selling, general and administrative (SG&A) expenses rose 7.4% to $178.9 million.

Interest expenses declined 15.9% to $32.5 million from $38.6 million in the prior-year quarter.

HEI’s Segmental Performance

Flight Support Group: Net sales from this segment surged 15.3% year over year to $713.2 million. This rise was driven by strong organic growth of 13% and the positive impact of its fiscal 2023 and 2024 acquisitions.

The segment’s operating income soared 22.1% year over year to $166.1 million. This increase was due to solid net sales growth, SG&A expense efficiencies realized from the net sales growth and an improved gross profit margin.

Electronic Technologies Group: The segment’s net sales increased 15.5% to $330.3 million. This rise was driven by strong organic growth of 11% and the positive impact of its fiscal 2023 and 2024 acquisitions.

The segment’s operating income increased 38.2% year over year to $76.5 million. This increase was due to solid net sales growth, SG&A expense efficiencies realized from the net sales growth and an improved gross profit margin.

HEI’s Financial Details

As of Jan. 31, 2025, HEI’s cash and cash equivalents totaled $165.5 million compared with $162.1 million as of Oct. 31, 2024.

Cash flow provided by operating activities was $203 million during the first quarter of fiscal 2025, reflecting an 81.8% rise from the prior-year period’s level.

HEICO reported a long-term debt (net of current maturities) of $2.35 billion as of Jan. 31, 2025, up from $2.23 billion as of Oct. 31, 2024.

HEICO’s Zacks Rank

HEICO currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases

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Textron Inc. (TXT - Free Report) reported fourth-quarter 2024 adjusted earnings of $1.34 per share, which beat the Zacks Consensus Estimate of $1.25 by 7.2%. The company reported total revenues of $3.61 billion, which missed the consensus estimate of $3.74 billion by 3.5%.

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