Yahoo Finance HEICO (HEI) Q2 Earnings Surpass Estimates, Sales Rise Y/Y
HEICO Corporation’s HEI second-quarter fiscal 2024 earnings per share (EPS) of 88 cents beat the Zacks Consensus Estimate of 80 cents by 10%. The bottom line also improved 15.8% from the prior-year quarter’s 76 cents.
Total Sales
The company’s net sales increased 38.9% year over year to $955.4 million in the reported quarter. The figure also beat the Zacks Consensus Estimate of $944 million by 1.3%.
The year-over-year upside was driven by increased sales volume from both the Flight Support Group and Electric Technologies Group segments.
Heico Corporation Price, Consensus and EPS Surprise
Heico Corporation price-consensus-eps-surprise-chart | Heico Corporation Quote
Operational Update
HEICO’s cost of sales increased 38.5% year over year to $583.6 million in the quarter under review. The company’s selling, general and administrative expenses increased 48.6% to $162.6 million.
Interest expense of $38.5 million increased a massive 238.6% from $11.4 million in the prior-year quarter.
Segmental Performance
Flight Support Group: Net sales from this segment surged 65% year over year to $647.2 million. This rise was driven by strong organic growth of 12% and the positive impact of its fiscal 2024 acquisitions.
The segment’s operating income soared 49% year over year to $148.9 million. This increase was due to solid net sales growth.
Electronic Technologies Group: The segment’s net sales increased 6% to $319.3 million, primarily driven by organic growth of 4%.
The segment’s operating income rose 11% year over year to $75.3 million, primarily driven by improved gross profit margin and net sales growth.
Financial Details
As of Apr 30, 2024, HEI’s cash and cash equivalents totaled $204.2 million compared with $171 million as of Oct 31, 2023.
Cash flow provided by operating activities was $252.8 million during the six months ending Apr 30, 2024, implying a 63.7% rise from the prior-year period’s level.
HEICO reported long-term debt (net of current maturities) of $2.39 billion as of Apr 30, 2024, down from $2.46 billion as of Oct 31, 2023.
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
L3Harris Technologies, Inc. LHX reported first-quarter 2024 adjusted earnings (from continuing operations) of $3.06 per share, which beat the Zacks Consensus Estimate of $2.89 by 5.9%. The bottom line also increased 7% from the year-ago quarter’s reported figure of $2.86.
L3Harris’ first-quarter revenues totaled $5.21 billion, which beat the Zacks Consensus Estimate of $5.11 billion by 2%. The top line also rose 16.6% from the year-ago quarter’s level of $4.47 billion.
Lockheed Martin Corporation LMT reported first-quarter 2024 adjusted earnings of $6.33 per share, which beat the Zacks Consensus Estimate of $5.80 by 9.1%. However, the bottom line declined 1.6% from the year-ago quarter's recorded figure of $6.43.
Its net sales were $17.20 billion, which surpassed the Zacks Consensus Estimate of $16.19 billion by 6.2%. The top line also increased 13.7% from $15.13 billion reported in the year-ago quarter.
Hexcel Corporation HXL reported first-quarter 2024 adjusted earnings of 44 cents per share, which came in line with the Zacks Consensus Estimate.
In the first quarter, the company’s net sales totaled $472.3 million, which missed the Zacks Consensus Estimate of $475 million by 0.6%. However, the top line witnessed an improvement of 3.2% from the year-ago quarter’s reported figure of $457.7 million.
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