Heico (NYSE:HEI) Releases Earnings Results, Beats Estimates By $0.16 EPS

Heico (NYSE:HEI) released its earnings results on Tuesday. The aerospace company reported $1.67 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.51 by $0.16, Zacks reports. The company had revenue of $1.41 billion during the quarter, compared to analyst estimates of $1.36 billion. Heico had a return on equity of 18.41% and a net margin of 16.38%.Heico’s quarterly revenue was up 23.1% on a year-over-year basis. During the same period in the prior year, the company posted $1.26 earnings per share.

Heico Trading Down 1.2%

NYSE:HEI opened at $346.82 on Thursday. Heico has a 1 year low of $256.11 and a 1 year high of $376.86. The stock’s fifty day moving average price is $353.86 and its two-hundred day moving average price is $321.38. The company has a debt-to-equity ratio of 0.53, a current ratio of 2.92 and a quick ratio of 1.36. The company has a market cap of $48.44 billion, a P/E ratio of 57.71, a P/E/G ratio of 3.54 and a beta of 1.04.

Heico Dividend Announcement

The firm also recently disclosed a dividend, which was paid on Wednesday, July 15th. Investors of record on Wednesday, July 1st were issued a $0.13 dividend. The ex-dividend date of this dividend was Wednesday, July 1st. This represents a yield of 7.0%. Heico’s dividend payout ratio (DPR) is 4.64%.

Insider Activity

In other Heico news, CAO Bradley K. Rowen sold 1,326 shares of the stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $241.63, for a total value of $320,401.38. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Insiders own 4.86% of the company’s stock.

Institutional Investors Weigh In On Heico

Several large investors have recently added to or reduced their stakes in the business. GM Advisory Group LLC boosted its position in Heico by 1.2% in the fourth quarter. GM Advisory Group LLC now owns 2,985 shares of the aerospace company’s stock worth $966,000 after purchasing an additional 36 shares during the last quarter. Coastal Bridge Advisors LLC increased its position in shares of Heico by 4.1% during the 4th quarter. Coastal Bridge Advisors LLC now owns 1,246 shares of the aerospace company’s stock valued at $403,000 after purchasing an additional 49 shares during the last quarter. IFC & Insurance Marketing Inc. bought a new position in shares of Heico in the 4th quarter worth approximately $26,000. Birchwood Financial Partners Inc. bought a new position in shares of Heico in the 4th quarter worth approximately $32,000. Finally, Vise Technologies Inc. boosted its holdings in shares of Heico by 17.3% in the fourth quarter. Vise Technologies Inc. now owns 765 shares of the aerospace company’s stock worth $248,000 after buying an additional 113 shares during the last quarter. Institutional investors own 27.12% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on the company. Zacks Research upgraded Heico from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, June 9th. Jefferies Financial Group set a $430.00 price target on shares of Heico in a report on Wednesday. Deutsche Bank Aktiengesellschaft set a $421.00 price objective on shares of Heico and gave the stock a “buy” rating in a report on Wednesday, August 19th. Truist Financial raised shares of Heico to a “strong-buy” rating in a research report on Friday, May 1st. Finally, Susquehanna raised their price target on shares of Heico from $321.00 to $365.00 and gave the stock a “neutral” rating in a research note on Friday, May 29th. Three analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $378.29.

Key Stories Impacting Heico

Here are the key news stories impacting Heico this week:

• Positive Sentiment: HEICO’s third-quarter revenue rose 23% year over year to $1.41 billion, exceeding the $1.35 billion consensus estimate. Earnings per share reached $1.67, beating expectations of $1.51 and increasing from $1.26 a year earlier. HEICO Corporation Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Profitability was especially strong: net income increased 33% to a record $235.4 million, while operating income climbed 34%. Consolidated organic sales growth reached 14%, indicating that gains extended beyond acquisitions. HEICO Reports Record Fiscal Third-Quarter Results
• Positive Sentiment: HEICO subsidiary VPT expanded distribution through DigiKey for its military, avionics and space power-conversion products. The move could improve product accessibility and support future sales, although the near-term financial effect is likely limited. VPT Products Now Available on DigiKey
• Neutral Sentiment: The quarterly beat was driven by continued aerospace and defense demand, along with acquisitions. Investors will likely focus on whether HEICO can sustain its growth rate and margins in coming quarters. HEICO Third-Quarter Revenue Climbs
• Negative Sentiment: Despite the earnings beat, HEI trades at a high valuation, with a price-to-earnings ratio near 62 and a price-to-earnings-growth ratio of 3.56. That premium may be encouraging profit-taking and raising the bar for future earnings surprises.

About Heico

HEICO Corporation is an aerospace, defense and electronics company that designs, manufactures, and sells a range of products and provides repair and aftermarket services. Headquartered in Hollywood, Florida, HEICO supplies replacement components, repair services and engineered systems for commercial and business aviation, military and space markets as well as for selected industrial and medical customers. The company’s offerings are focused on sustaining and improving the reliability and availability of complex equipment across its end markets.

HEICO operates through two principal business areas.