LONDON, UK / ACCESSWIRE / January 10, 2018 / Active-Investors.com has just released a free earnings report on HEICO Corp. (NYSE: HEI). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=HEI. HEICO reported its fourth quarter and fiscal 2017 operating results on December 18, 2017. The defense and aerospace contractor outperformed top- and bottom-line expectations and provided guidance for the fiscal year 2018. Register today and get access to over 1,000 Free Research Reports by joining our site below:
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, HEICO most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Earnings Highlights and Summary
HEICO's net sales increased 16% to a record $421.2 million in Q4 FY17, up from $363.3 million in Q4 FY16. The Company's sales numbers topped analysts' expectations of $407.7 million. HEICO's FY17 net sales advanced 11% to a record $1.52 billion compared to $1.38 billion in FY16.
During Q4 FY17, HEICO's operating income climbed 18% to $89.4 million compared to $76.1 million in Q4 FY16. The Company's consolidated operating margin improved to 21.2% in the reported quarter, up from 20.9% in the year ago corresponding period.
HEICO reported that net income increased 21% to a record $53.7 million, or $0.62 per diluted share, in Q4 FY17, up from $44.3 million, or $0.52 per diluted share, in Q4 FY16. The Company's earnings exceeded Wall Street's estimates of $0.57 per share.
In the fiscal year ended October 31, 2017, the Company's net income increased 19% to a record $186.0 million, or $2.14 per diluted share, up from $156.2 million, or $1.83 per diluted share, in the fiscal year ended October 31, 2016.
HEICO's Segment Results
During Q4 FY17, the Flight Support Group's net sales jumped 12% to $256.9 million, up from $228.5 million in Q4 FY16. The increase reflected aggregate organic growth of 6% in the Company's aftermarket replacement parts and repair and overhaul parts and services product lines and the impact of its recent profitable acquisitions.
The Flight Support Group's operating income increased 4% to $46.5 million in Q4 FY17, up from $44.7 million in Q4 FY16. The segment's operating margin was 18.1% and 19.6% in the fourth quarter of fiscal 2017 and 2016, respectively.
With respect to fiscal 2018, HEICO is forecasting Flight Support Group's net sales growth of approximately 10% on a y-o-y basis and the full year segment operating margin to be approximately in the range of 18.0% to 18.5%.
For Q4 FY17, Electronic Technologies Group's net sales surged 22% to a record $169.1 million compared to $138.3 million in Q4 FY16, driven by strong organic growth of 14%, principally from increased demand for its defense, space and aerospace products.
The Electronic Technologies Group's operating income increased 39% to a record $51.0 million in Q4 FY17, up from $36.8 million in Q4 FY16. The segment's operating margin improved to 30.2% in the reported quarter versus 26.6% in the year earlier same quarter.
For FY18, HEICO is projecting Electronic Technologies Group's net sales growth of approximately 12% on a y-o-y basis and anticipate full year segment operating margin to be approximately 27%.
HEICO's total debt to shareholders' equity ratio was 54.0% as of October 31, 2017. The Company's net debt to shareholders' equity ratio was approximately 50% as of October 31, 2017, with net debt of $621.9 million principally incurred to fund acquisitions in fiscal 2017 and 2016.
HEICO's cash flow provided by operating activities totaled $274.9 million, or 148% of net income, in FY17, up from $249.2 million in FY16. The Company's cash flow provided by operating activities increased 25% to $95.6 million in the reported quarter, up from $76.8 million in the year earlier same quarter.
HEICO's Board of Directors declared a $0.0875 per share regular semi-annual cash dividend payable on January 17, 2018. This cash dividend represents a 9% increase over the prior semi-annual per share amount of $0.08 paid in July 2017. The Company noted that considering the impact of cash dividends, prior stock splits and stock dividends, one share of HEICO worth $8.38 in 1990 has become worth on a combined basis approximately $2,122, representing an increase of approximately 253 times the 1990 value and a compound annual growth rate of approximately 23% as of December 15, 2017.
For fiscal 2018, HEICO is forecasting 10% to 12% growth in full year net sales and in full year net income over fiscal 2017 levels. The Company is anticipating its FY18 consolidated operating margin to approximate 20%, depreciation and amortization expense of approximately $75 million, capital expenditures to approximate $50 million and cash flow from operations to approximate $290 million.
Stock Performance Snapshot
January 09, 2018 - At Tuesday's closing bell, HEICO's stock marginally 0.83%, ending the trading session at $97.25.
Volume traded for the day: 238.83 thousand shares, which was above the 3-month average volume of 227.47 thousand shares.
Stock performance in the last month – up 8.48%; previous three-month period – up 8.65%; past twelve-month period – up 57.42%; and year-to-date – up 3.07%
After yesterday's close, HEICO's market cap was at $7.32 billion.
Price to Earnings (P/E) ratio was at 45.38.
The stock has a dividend yield of 0.17%.
The stock is part of the Industrial Goods sector, categorized under the Aerospace/Defense Products & Services industry. This sector was up 0.6% at the end of the session.
Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
A-I has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email email@example.com. Rohit Tuli, a CFA® charter-holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Phone number: 73 29 92 6381
Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.