U.S. Markets close in 2 hrs 45 mins
  • S&P 500

    3,825.33
    +39.95 (+1.06%)
     
  • Dow 30

    31,097.26
    +321.86 (+1.05%)
     
  • Nasdaq

    11,127.84
    +99.14 (+0.90%)
     
  • Russell 2000

    1,727.76
    +19.77 (+1.16%)
     
  • Crude Oil

    110.30
    +1.87 (+1.72%)
     
  • Gold

    1,807.40
    +5.90 (+0.33%)
     
  • Silver

    19.86
    +0.19 (+0.98%)
     
  • EUR/USD

    1.0428
    +0.0001 (+0.0104%)
     
  • 10-Yr Bond

    2.8890
    0.0000 (0.00%)
     
  • Vix

    26.70
    -2.01 (-7.00%)
     
  • GBP/USD

    1.2109
    +0.0006 (+0.0484%)
     
  • USD/JPY

    135.6670
    +0.4920 (+0.3640%)
     
  • BTC-USD

    19,594.89
    -178.61 (-0.90%)
     
  • CMC Crypto 200

    420.84
    +0.70 (+0.17%)
     
  • FTSE 100

    7,232.65
    +64.00 (+0.89%)
     
  • Nikkei 225

    26,153.81
    +218.19 (+0.84%)
     

Heico (HEI) Q4 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 fourth-quarter fiscal 2021 earnings per share (EPS) of 62 cents surpassed the Zacks Consensus Estimate of 57 cents by 8.8%. The bottom line improved 37.8% from the prior-year period’s figure of 45 cents.

The year-over-year improvement can be attributed to sales and operating income growth witnessed in the fiscal fourth quarter.

During fiscal 2021, the company reported EPS of $2.21, which surpassed the Zacks Consensus estimate of $2.16 by 2.3%. The fiscal bottom line however declined by 3.5% compared with the prior fiscal figure.

Total Sales

The company’s net sales increased 20% year over year to $509.4 million in the reported quarter, primarily driven by consistent recovery observed in the commercial aerospace market industry.

Moreover, total sales beat the Zacks Consensus Estimate of $506 million by 0.8%.

Heico Corporation Price and Consensus

Heico Corporation Price and Consensus
Heico Corporation Price and Consensus

Heico Corporation price-consensus-chart | Heico Corporation Quote

During fiscal 2021, the company generated revenues of $1.87 billion, which surpassed the Zacks Consensus Estimate of $1.86 by 0.5%. The fiscal sales increased 4% from the prior fiscal figure.

Operational Update

HEICO’s total costs and expenses increased 16.7% year over year to $394.4 million in the quarter under review. The increase was due to higher cost of sales, and selling, general and administrative expenses.

Segmental Performance

Flight Support Group: Net sales surged 34% year over year to $260.4 million, driven by enhanced demand for its commercial aerospace products across all product lines and the impact from its profitable fiscal 2021 acquisitions.

Operating income soared 126% year over year to $48.6 million on net sales growth and an improved gross profit margin. Further, its operating margin expanded a massive 760 basis points (bps) to 18.7% compared with 11.1% in the prior-year period.

Electronic Technologies Group: The segment’s net sales climbed 7% to $253 million in the quarter under review, driven by organic growth, and benefits from fiscal 2020 and 2021 acquisitions.

The segment reported an operating income improvement of 4% year over year to $76.9 million, primarily on net sales growth. However, the company’s operating margin contracted 80 bps to 30.4%.

Financial Details

As of Oct 31, 2021, HEICO’s cash and cash equivalents totaled $108.3 million compared with $406.9 million as of Oct 31, 2020.

Cash flow provided by operating activities was $444.1 million at the end of fiscal 2021, reflecting 8.5% growth from the prior-year period.

HEICO reported long-term debt (net of current maturities) of $235 million as of Oct 31, 2021, down from $738.8 million as of Oct 31, 2020.

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.

Other Defense Releases

Curtiss-Wright CW reported third-quarter 2021 adjusted earnings of $1.88 per share, which surpassed the Zacks Consensus Estimate of $1.80 by 4.4%. Its total sales exceeded the Zacks Consensus Estimate of $601 million by 3.3%.

Curtiss-Wright updated its financial guidance for 2021 and now expects adjusted earnings in the range of $7.20-$7.35 per share, compared with the prior guidance range of $7.15-$7.35 per share. In the past six months, shares of Curtiss-Wright have returned 10.3%.

Raytheon Technologies’ RTX third-quarter 2021 adjusted earnings per share of $1.26 outpaced the Zacks Consensus Estimate of $1.07 by 17.8%. The company’s third-quarter sales of $16,213 million missed the Zacks Consensus Estimate of $16,494 million by 1.7%.

Raytheon Technologies raised the earnings guidance range for 2021 and tweaked revenue expectations. It currently projects adjusted earnings in the range of $4.10-$4.20 per share, compared with the prior range of $3.85-$4.00. The company expects to record revenues worth approximately $64.50 billion compared with the earlier projection of $64.4-$65.4 billion. In the past year, shares of Raytheon Technologies have risen 18.1%.

Hexcel Corporation HXL reported third-quarter 2021 adjusted earnings of 13 cents per share, which outpaced the Zacks Consensus Estimate of 8 cents by 62.5%. Hexcel's net sales totaled $333.8 million, which missed the Zacks Consensus Estimate of $353 million by 5.3%.

Hexcel continues to withhold its financial guidance citing market uncertainties stemming from the pandemic. The Zacks Consensus Estimate for 2021 has increased 13.6% to 25 cents per share in the past 60 days. Hexcel’s shares have gained 2.4% in the past year.


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

Hexcel Corporation (HXL) : Free Stock Analysis Report

CurtissWright Corporation (CW) : 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