U.S. Markets open in 7 hrs 22 mins
  • S&P Futures

    3,757.00
    -32.50 (-0.86%)
     
  • Dow Futures

    30,531.00
    -250.00 (-0.81%)
     
  • Nasdaq Futures

    11,419.00
    -110.50 (-0.96%)
     
  • Russell 2000 Futures

    1,687.70
    -20.30 (-1.19%)
     
  • Crude Oil

    104.78
    -0.98 (-0.93%)
     
  • Gold

    1,797.60
    -9.70 (-0.54%)
     
  • Silver

    19.89
    -0.46 (-2.27%)
     
  • EUR/USD

    1.0470
    -0.0013 (-0.1256%)
     
  • 10-Yr Bond

    2.9720
    0.0000 (0.00%)
     
  • Vix

    28.71
    +0.55 (+1.95%)
     
  • GBP/USD

    1.2133
    -0.0042 (-0.3482%)
     
  • USD/JPY

    134.8390
    -0.8890 (-0.6550%)
     
  • BTC-USD

    19,487.61
    -499.94 (-2.50%)
     
  • CMC Crypto 200

    418.34
    -13.13 (-3.04%)
     
  • FTSE 100

    7,169.28
    -143.04 (-1.96%)
     
  • Nikkei 225

    25,969.36
    -423.68 (-1.61%)
     

HEICO (HEI) Q2 Earnings Beat Estimates, Sales Increase Y/Y

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

HEICO Corporation’s HEI second-quarter fiscal 2022 earnings per share (EPS) of 62 cents surpassed the Zacks Consensus Estimate of 61 cents by 1.6%. The bottom line improved by 21.6% from the prior-year period’s figure of 51 cents per share.

The year-over-year improvement can be attributed to higher net sales and operating income.

Total Sales

The company’s net sales increased by 15.5% year over year to $538.8 million in the reported quarter, primarily driven by the consistent rebound observed in demand for the company’s commercial aerospace products and services. Moreover, total sales beat the Zacks Consensus Estimate of $532 million by 1.2%.

Heico Corporation Price, Consensus and EPS Surprise

Heico Corporation Price, Consensus and EPS Surprise
Heico Corporation Price, Consensus and EPS Surprise

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

Operational Update

HEICO’s total costs and expenses increased by 12.5% year over year to $416 million in the quarter under review. The increase was due to the higher cost of sales and SG&A expenses.

Segmental Performance

Flight Support Group: Net sales surged 33% year over year to $306.3 million, driven by the enhanced demand for the majority of its commercial aerospace products and services.

The operating income soared 87% year over year to $66.2 million on the improved gross profit margin and efficiencies realized from the higher net sales volume. Further, its operating margin expanded by a massive 620 basis points (bps) to 21.6% compared with 15.4% in the prior-year period.

Electronic Technologies Group: The segment’s net sales slipped 2.3% to $237.4 million in the quarter under review, primarily due to the lower demand for its defense and space products, partially offset by the increased demand for its space, medical and other electronic products.

The segment’s operating income decreased by 7.4% year over year to $66 million, primarily on lower defense sales and a lower gross profit margin. The company’s operating margin contracted by 150 bps to 27.8%.

Financial Details

As of Apr 30, 2022, HEI’s cash and cash equivalents totaled $117.3 million compared with $108.3 million as of Oct 31, 2021.

Cash flow provided by operating activities was $174.8 million during the six months ended Apr 30, 2022, reflecting a 16.8% decline from the prior-year period.

HEICO reported long-term debt (net of current maturities) of $264.1 million as of Apr 30, 2022, 2022, slightly up from $235 million as of Oct 31, 2021.

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.

Defense Releases

Hexcel Corporation HXL reported fourth-quarter 2021 adjusted earnings of 16 cents per share, which exceeded the Zacks Consensus Estimate of 12 cents by 33.3%. The bottom line also improved from a loss of 18 cents per share incurred in the year-ago quarter.

The Zacks Consensus Estimate for Hexcel’s 2022 earnings suggests an improvement of a solid 359.3% from the prior-year figure. For HXL’s 2022 sales, the Zacks Consensus Estimate indicates growth of 17.5% from the prior-year figure.

Huntington Ingalls Industries, Inc.’s HII fourth-quarter 2021 adjusted earnings of $2.84 per share declined by 34.7% from the $4.35 reported in the prior-year quarter. Total revenues came in at $2,677 million, lagging the Zacks Consensus Estimate of $2,738.4 million by 2.2%.

The Zacks Consensus Estimate for Huntington Ingalls’s 2022 earnings suggests a decline of 8.4% from the prior-year figure. For HII’s 2022 sales, the Zacks Consensus Estimate suggests growth of 11.3% from the prior-year figure.

Raytheon Technologies Corporation’s RTX fourth-quarter 2021 adjusted EPS of $1.08 beat the Zacks Consensus Estimate of $1.01 by 6.9%. Moreover, the bottom line improved by 46% from the year-ago quarter’s adjusted earnings of 74 cents.

The Zacks Consensus Estimate for Raytheon’s 2022 earnings suggests an improvement of 14.4% from the prior-year figure. For RTX’s 2022 sales, the Zacks Consensus Estimate indicates growth of 5.5% from the prior-year figure. Raytheon boasts a long-term earnings growth rate of 10.2%.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Huntington Ingalls Industries, Inc. (HII) : Free Stock Analysis Report
 
Hexcel Corporation (HXL) : Free Stock Analysis Report
 
Heico Corporation (HEI) : Free Stock Analysis Report
 
Raytheon Technologies Corporation (RTX) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research