HEICO (HEI) Q4 Earnings Surpass Estimates, Sales Rise Y/Y
HEICO Corporation’s HEI fourth-quarter fiscal 2023 adjusted earnings per share (EPS) of 84 cents beat the Zacks Consensus Estimate of 70 cents by 20%. The bottom line also improved 20% from the prior-year period’s reported actual.
The company reported GAAP earnings of 74 cents compared with 70 cents in the fourth quarter of fiscal 2022.
For fiscal 2023, the company reported adjusted earnings of $3.04 per share.
Total Sales
The company’s net sales increased 53.6% year over year to $936.4 million in the reported quarter. Total sales also beat the Zacks Consensus Estimate of $882 million by 6.1%.
The fiscal fourth quarter’s consolidated organic net sales growth of 12% was principally driven by continued strong demand for HEI’s commercial aerospace products and services along with the contributions from its fiscal 2023 and 2022 acquisitions.
For fiscal 2023, the company reported net sales of $2.97 billion, up from $2.21 billion at the end of fiscal 2022.
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 61.3% year over year to $747 million in the quarter under review. The rise was due to the higher cost of sales and SG&A expenses.
Interest expense of $43.2 million increased a havoc when compared with $3.2 million in the prior-year quarter.
Segmental Performance
Flight Support Group: Net sales surged 74% year over year to $601.7 million. This hike was driven by strong organic growth of 20% and the impact from its Wencor acquisition.
The operating income soared 47.2% year over year to $114.6 million. This increase was due to solid net sales growth and an improved gross profit margin.
Electronic Technologies Group: The segment’s net sales increased 27.6% to $342.5 million, primarily driven by benefits from its fiscal 2023 and 2022 acquisitions and 6% organic growth.
The segment’s operating income improved 8.2% year over year to $86.4 million, primarily driven by higher net sales volume.
Financial Details
As of Oct 31, 2023, HEI’s cash and cash equivalents totaled $171 million compared with $139.5 million as of Oct 31, 2022.
Cash flow provided by operating activities was $448.7 million during the fiscal year ending Oct 31, 2023, implying a 4.1% decline from the prior-year period’s level.
HEICO reported long-term debt (net of current maturities) of $2,460.3 million at the end of fiscal 2023, up from $288.6 million as of 2022-end.
Zacks Rank
HEICO currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Curtiss-Wright Corporation CW reported third-quarter 2023 adjusted earnings per share (EPS) of $2.54, which surpassed the Zacks Consensus Estimate of $2.42 by 5%. The bottom line also improved 22.7% from the year-ago quarter’s level of $2.07.
In the quarter under review, the company’s net sales of $724.3 million went up 14.9% year over year. Also, the top line surpassed the Zacks Consensus Estimate of $684.9 million by 5.8%.
Teledyne Technologies Inc. TDY reported third-quarter 2023 adjusted earnings of $5.05 per share, which beat the Zacks Consensus Estimate of $4.75 by 6.3%. The bottom line also improved 11.2% from $4.54 recorded in the year-ago quarter.
Total sales were $1,402.5 million, which missed the Zacks Consensus Estimate of $1,426.3 million by 1.7%. The top line, however, grew 2.9% from $1,363.6 million reported in the year-ago quarter.
TransDigm Group Incorporated TDG reported fourth-quarter fiscal 2023 adjusted earnings of $8.03 per share, which beat the Zacks Consensus Estimate of $7.54 by 6.5%. The bottom line improved 46% from the prior-year quarter’s reported figure of $5.50.
Net sales amounted to $1,852 million, up 22.6% from $1,510 million registered in the prior-year period. The reported figure also beat the Zacks Consensus Estimate of $1,840.4 million by 0.6%.
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