HEI Earnings Prediction
The chart below shows how HEI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HEI sees a -0.83% change in stock price 10 days leading up to the earnings, and a -1.45% change 10 days following the report. On the earnings day itself, the stock moves by -0.13%. This data can give you a slight idea of what to expect for the next quarter's release.
HEI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
896.36M
44.36%
-4.28%
Gross Margin
41.49%
-2.42%
-0.81%
Operating Margin
20.10%
-3.60%
-0.64%
Net Margin
14.00%
-15.61%
15.42%
EPS
0.82
22.39%
10.81%
No Data Available
HEI Earnings Analysis
HEICO Corporation Corporation (HEI.N) Earnings Conference Call
Positive
- Consolidated operating income and net sales improved by 39% and 44%, respectively in Q1 2024 compared to Q1 2023.
- Organic net sales growth in Flight Support Group, commercial aerospace products, and services contributed to the increase.
- Net income increased by 23% to $114.7 million in Q1 2024.
- Consolidated EBITDA increased by 43% to $224.4 million in Q1 2024.
- HEICO's Flight Support Group set an all-time quarterly net sales and operating income record in Q1 2024.
- Net sales increased by 67% to a record $618.7 million in Q1 2024.
- Operating income increased by 63% to a record $136 million in Q1 2024.
- The Flight Support Group's organic net sales growth mainly from aftermarket replacement parts and repair services.
- High teens organic net sales growth in aftermarket replacement parts and repair and overhaul parts and services contributed to the positive results.
- Cash flow provided by operating activities increased by 46% to $111.7 million in Q1 2024.
- Strong cash flow from operations was forecasted for fiscal year 2024.
- HEICO continues to anticipate net sales growth in both Flight Support and Electronic Technologies Group for fiscal year 2024.
- Contributions from fiscal '23 and '24 acquisitions are expected to drive net sales growth.
- Future quarters for Electronic Technologies Group are expected to be materially stronger.
- HEICO's commitment to developing new products and services with further market penetration.
- The strategy of growing a highly diversified portfolio of excellent businesses continues to produce favorable results for all shareholders.
- Expectation to achieve 15% to 20% annual growth in net income for fiscal year 2024.
- Confidence in attaining growth in the current year without future acquisitions.
- Previous track record of achieving 18% to 19% annual growth over the last 30 to 33 years.
- Environmental considerations and earnings call model
- As summarized, it is clear that HEICO Corporation had a successful quarter with significant improvements in operating income, net sales, and profitability across its Flight Support and Electronic Technologies groups. The company's commitment to growth, financial strength, and product development bodes well for its future performance and shareholder value.
Negative
- Lower organic net sales of other electronics, medical, and space products in the Electronic Technologies Group.
- Operating income of the Electronic Technologies Group decreased in the first quarter of fiscal '24 compared to the first quarter of fiscal '23.
- Operating margin of the Electronic Technologies Group decreased in the first quarter of fiscal '24 compared to the first quarter of fiscal '23.
- Higher new product research and development investment increased expenses in the Electronic Technologies Group in the first quarter of fiscal '24.
- Lower SG&A efficiencies in the Electronic Technologies Group due to less favorable product sales mix.
- Operating margin of the Electronic Technologies Group was affected by higher new product research and development expenses and increased selling, general, and administrative expenses.
- Future quarters of the Electronic Technologies Group are expected to be materially stronger than the first quarter of fiscal '24.
