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Earnings Highlights and Review: HEICO Announced Record Quarterly Sales and Earnings

Research Desk Line-up: KLX Inc. Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 12, 2017 / Pro-Trader Daily publishes post-earnings coverage on HEICO Corp. (NYSE: HEI) following the Company's release of its second quarter fiscal 2017 financial results on May 23, 2017. The defense and aerospace contractor surpassed earnings expectations and also raised its sales and earnings outlook for fiscal 2017. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Aerospace/Defense Products & Services industry. Pro-TD has currently selected KLX Inc. (NASDAQ: KLXI) for due-diligence and potential coverage as the Company reported on May 24, 2017, its financial results for Q1 2017. Register for a free membership today, and be among the early birds that get access to our report on KLX Inc. when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on HEI; also brushing on KLXI. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=HEI

http://protraderdaily.com/optin/?symbol=KLXI

Earnings Reviewed

HEICO's net sales improved 5% to a record $368.7 million in the second quarter of fiscal 2017 ended April 30, 2017, compared to net sales of $350.6 million in Q2 FY16. HEICO's net sales increased 8% to a record $712.1 million in H1 2017, up from $656.9 million in H1 2016.

For Q2 FY17, HEICO's operating income grew 15% to a record $76.5 million, up from $66.8 million in Q2 FY16. The Company's consolidated operating margin improved to 20.8% in the reported quarter compared with 19.0% in the prior year's same quarter.

During Q2 FY17, HEICO's net income increased 18% to a record $45.7 million, or $0.53 per diluted share, compared to net income of $38.7 million, or $0.45 per diluted share, in Q2 FY16. The Company's earnings surpassed Wall Street's expectations of $0.53 per share. HEICO's net income increased 24% to a record $86.6 million, or $1.00 per diluted share, in H1 2017, up from $69.9 million, or $0.82 per diluted share, in H1 2016.

Segment Results

During Q2 FY17, HEICO's Flight Support Group's net sales increased 5% to a record $231.8 million compared to net sales of $220.3 million in Q2 FY16. The segment's operating income increased 8% to a record $44.7 million in the reported quarter, up from $41.3 million in the prior year's same quarter. For Q2 FY17, Flight Support Group's operating margin increased to 19.3% higher compared to 18.8% in Q2 FY16.

With respect to the remainder of fiscal 2017, HEICI is expecting mid- to high-single digit growth in the Flight Support Group's net sales over FY16 levels and the full year Flight Support Group operating margin to be in the range of 19.0% - 19.5%.

For Q2 FY17, HEICO's Electronic Technologies Group's net sales increased 6% to a record $141.2 million, up from $132.6 million in Q2 FY16. The segment's operating income increased 16% to a record $38.8 million in the reported quarter, up from $33.4 million in the year ago comparable period. In Q2 FY17, Electronic Technologies Group's operating margin improved to 27.5%, up from 25.2% in the year earlier same quarter

For the remainder of FY17, HEICO reiterated mid- to high-single digit growth in the Electronic Technologies Group's net sales over FY16 levels, and is now forecasting the segment's operating margin to be approximately 25%.

Cash Matters

During H1 2017, HEICO's cash flow provided by operating activities totaled $97.7 million, or 113% of net income. For the full fiscal year 2017, the Company is expecting cash flow provided by operating activities to be approximately 150% of net income.

HEICO's total debt to shareholders' equity ratio was 40.5% as of April 30, 2017. The Company's net debt to shareholders' equity ratio was 37.3% as of April 30, 2017, with net debt (total debt less cash and cash equivalents) of $424.1 million principally incurred to fund acquisitions in fiscal 2017 and 2016. Additionally, the Company increased the aggregate principal amount of its revolving credit facility by $200 million to $1.0 billion through increased commitments from existing lenders in April 2017.

Outlook

For FY17, HEICO increased its estimated net sales growth to 8%-10% and net income to advance 12%-14% from its previous growth forecast of 6%-8% and 9% - 11%, respectively. Additionally, the Company is anticipating consolidated operating margin to be approximately 20%; depreciation and amortization expense to be approximately $65 million; and capital expenditures to be approximately $35 million for FY17.

Stock Performance

At the closing bell, on Friday, June 09, 2017, HEICO's stock was slightly up 0.23%, ending the trading session at $73.44. A total volume of 92.10 thousand shares have exchanged hands. The Company's stock price soared 5.64% in the last three months, 12.58% in the past six months, and 36.14% in the previous twelve months. Moreover, the stock surged 18.99% since the start of the year. The stock is trading at a PE ratio of 36.48 and has a dividend yield of 0.19%. The stock currently has a market cap of $5.58 billion.

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