A month has gone by since the last earnings report for Heico Corporation (HEI) . Shares have added about 3.7% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Heico due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.How Have Estimates Been Moving Since Then?It turns out, ...

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the tr ...

Core Viewpoint - The article discusses the investment strategy of selecting stocks based on their price-to-earnings (P/E) ratios, emphasizing that both low and rising P/E stocks can yield strong returns [1][2]. Group 1: P/E Ratio Insights - A low P/E ratio suggests that a stock's market price does not reflect its earnings potential, indicating growth opportunities [1]. - Rising P/E ratios can also indicate strong demand for stocks as earnings expectations increase, leading to higher stock prices [3][4]. - Stocks can experience P/E ratio increases of over 100% from their breakout points, presenting significant investment opportunities if identified early [5]. Group 2: Stock Screening Criteria - The article outlines specific criteria for selecting stocks with increasing P/E ratios, including: - Current year EPS growth estimates should be greater than or equal to last year's actual growth [7]. - Price changes over shorter timeframes should exceed those over longer timeframes, indicating consistent price increases [7][8]. - A 20% price increase from the breakout point is a positive signal, while increases over 100% may indicate limited upside potential [8]. Group 3: Selected Stocks - The article identifies five stocks that meet the screening criteria: - **Stantec (STN)**: Provides professional consulting services with an average four-quarter earnings surprise of 6.91% [9][10]. - **SL Green Realty (SLG)**: Dominates the New York office real estate market with an average four-quarter earnings surprise of 11.76% [10]. - **Leidos (LDOS)**: A global leader in science and technology with an average four-quarter earnings surprise of 28.34% [10]. - **Heico (HEI)**: Manufactures FAA-approved aircraft components with an average four-quarter earnings surprise of 11.92% [11]. - **Gibraltar Industries (ROCK)**: Produces products for the industrial and buildings market with an average four-quarter earnings surprise of 1.79% [11][12].

Investors might want to bet on Heico Corporation (HEI) , as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Since a changin ...

Institutional Investing Overview - Institutional investing serves as a key indicator for retail investors to assess market sentiment regarding specific stocks or assets, with hedge funds and advisors employing teams of analysts for research [1] - Retail investors can leverage institutional buying trends to identify potential investment opportunities by monitoring which shares are being purchased consistently [1] HEICO Corporation - HEICO has experienced a significant increase in institutional buying, with purchases reaching $1 billion in Q4 2025, indicating strong confidence in its long-term value [2] - The stock price of HEICO has risen by 13% since the end of the previous business period, and analysts have a Moderate Buy consensus rating with a predicted upside of 3.61% in the coming year [3] Occidental Petroleum (OXY) - Occidental Petroleum has seen a decline in share prices, down 26% year-over-year, with a recent 8% drop attributed to analyst downgrades [5] - Despite the downturn, institutional investors purchased $1.69 billion in OXY shares in Q4, a significant increase from $659 million in Q3, with a consensus price estimate predicting over 31% potential upside [6] Merck & Co., Inc. - Merck has seen institutional purchases rise to $13 billion in Q4, up from $4.65 billion in Q3, indicating strong interest despite trading near its 52-week low [9] - The stock offers a competitive dividend yield of 3.48% and has a history of increasing its annual dividend for the last 14 years, making it an attractive option for dividend investors [9] Prudential Financial (PRU) - Prudential Financial has seen institutional buying increase to $1.17 billion in Q4 from $486 million in Q3, despite a recent earnings estimate miss leading to a 12% dip in share prices [11] - The stock currently has a P/E ratio of 14.71 and a dividend yield of 4.91%, suggesting it may present a buying opportunity for investors with a higher risk tolerance [11]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended January 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to _______ Commission File Number: 001-04604 HEICO CORPORATION (Exact name of registrant as specified in its charter) Florida 65-0341002 (State or other jurisdi ...

Financial Data and Key Metrics Changes - Consolidated operating income and net sales in Q1 2025 increased by 26% and 15% respectively compared to Q1 2024, reaching record levels [10] - Consolidated net income rose 46% to a record $168 million or $1.20 per diluted share, up from $114.7 million or $0.82 per diluted share in Q1 2024 [10] - Cash flow from operating activities increased by 82% to $203 million in Q1 2025, compared to $111.7 million in Q1 2024 [12] - Consolidated EBITDA increased by 22% to $273.9 million in Q1 2025, up from $224.4 million in Q1 2024 [13] Business Line Data and Key Metrics Changes - Flight Support Group (FSG) achieved record operating income and net sales, increasing by 22% and 15% respectively over Q1 2024, with net sales reaching $713.2 million [11][18] - Electronic Technologies Group (ETG) saw operating income and net sales improve by 38% and 16% respectively, with net sales reaching $330.3 million [27][28] Market Data and Key Metrics Changes - The FSG's organic net sales growth was 13%, driven by increased demand for aftermarket replacement parts and repair services [11][18] - The ETG's organic net sales growth was 11%, primarily due to increased deliveries in defense, space, and aerospace products [27] Company Strategy and Development Direction - The company is strategically focused on key markets such as defense, space, and commercial aviation, positioning itself to capitalize on new opportunities [9] - The company continues to seek complementary acquisitions that align with its strategic and financial goals, maintaining a disciplined approach to M&A [14][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business environment, citing a pro-business agenda from the current U.S. administration that aligns with the company's long-term goals [9] - The company anticipates continued net sales growth in both FSG and ETG divisions, driven by strong organic growth and increased demand for products [32] Other Important Information - The company completed several key acquisitions in Q1 2025, including a 90% interest in Millennium International, enhancing its avionics repair capabilities [15][16] - The company paid its regular semiannual cash dividend of $0.11 per share, marking its 93rd consecutive semiannual cash dividend since 1979 [14] Q&A Session Summary Question: Flight Support Group's sales growth drivers - Most growth is attributed to expansion with existing customers, indicating deeper market penetration [38] Question: Future margin expectations - Management is cautious about predicting higher margins but acknowledges a trend of gradual improvement over the years [45][47] Question: Margin expansion in both segments - ETG aims for EBITDA margins in the 26% to 28% range, while FSG's margins are expected to remain strong due to operational efficiencies [52][53] Question: Pricing strategy and its impact on margins - The company has not significantly increased prices, focusing instead on covering cost increases while maintaining customer satisfaction [76][78] Question: Defense market opportunities - Management sees potential in missile defense programs and cost-saving solutions for customers, although significant revenue may not materialize until later years [120][121] Question: Supply chain performance - Supply chain issues have improved, but some challenges remain, particularly with labor shortages affecting supplier performance [102][105]

Core Insights - Heico Corporation reported revenue of $1.03 billion for the quarter ended January 2025, marking a year-over-year increase of 14.9% and exceeding the Zacks Consensus Estimate by 6.07% [1] - The company's EPS for the same period was $1.20, a significant increase from $0.82 a year ago, resulting in an EPS surprise of 29.03% compared to the consensus estimate of $0.93 [1] Financial Performance - Net Sales for the Electronic Technologies Group (ETG) reached $330.32 million, surpassing the average estimate of $290.78 million, with a year-over-year change of +15.5% [4] - Net Sales for the Flight Support Group (FSG) were $713.17 million, exceeding the average estimate of $684.77 million, reflecting a year-over-year change of +15.3% [4] - The Corporate & Intersegment segment reported net sales of -$13.27 million, slightly below the average estimate of -$13.01 million, but showing a year-over-year change of +59.9% [4] Operating Income - Operating income for the Flight Support Group was $166.12 million, above the average estimate of $150.17 million [4] - Operating income for the Electronic Technologies Group was $76.46 million, exceeding the average estimate of $68.65 million [4] - The Other segment, primarily corporate, reported an operating income of -$15.77 million, which was worse than the average estimate of -$13.27 million [4] Stock Performance - Heico's shares have returned -3.1% over the past month, compared to a -2.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - Heico Corporation reported strong quarterly earnings, significantly surpassing consensus estimates, indicating robust financial performance and potential for future growth [1][2]. Financial Performance - Heico's quarterly earnings were $1.20 per share, exceeding the Zacks Consensus Estimate of $0.93 per share, and up from $0.82 per share a year ago, representing a 46.34% year-over-year increase [1]. - The company achieved revenues of $1.03 billion for the quarter, surpassing the Zacks Consensus Estimate by 6.07% and showing a year-over-year increase from $896.36 million [2]. Earnings Surprises - Heico has consistently outperformed consensus EPS estimates over the last four quarters, achieving earnings surprises of 29.03% in the latest quarter and 2.06% in the previous quarter [1][2]. Market Performance - Despite strong earnings, Heico shares have declined approximately 4.2% since the beginning of the year, contrasting with the S&P 500's gain of 1.3% [3]. Future Outlook - The company's earnings outlook is mixed, with current consensus EPS estimates of $1.04 for the upcoming quarter and $4.20 for the current fiscal year [7]. - The Zacks Industry Rank places Aerospace - Defense Equipment in the top 29% of over 250 Zacks industries, suggesting a favorable industry outlook that could positively impact Heico's stock performance [8].

Financial Performance - HEICO Corporation reported a record net income of $168.0 million, a 46% increase from $114.7 million in Q1 2024, translating to $1.20 per diluted share[1][2]. - Net sales reached a record $1,030.2 million, up 15% from $896.4 million in Q1 2024, with an operating income increase of 26% to $226.8 million[2][3]. - The consolidated operating margin improved to 22.0%, up from 20.1% in the same quarter last year[2]. - For the first quarter of fiscal 2025, HEICO reported a net income of $181.6 million, an increase of 44.8% compared to $125.5 million in the same period of fiscal 2024[32]. - HEICO's EBITDA for the three months ended January 31, 2025, was $273.9 million, a 22.1% increase from $224.4 million in the same period of 2024[34]. Cash Flow and Assets - Cash flow from operating activities surged 82% to $203.0 million, compared to $111.7 million in Q1 2024[6]. - The company’s net cash provided by operating activities was $203.0 million, significantly higher than $111.7 million in the prior year[32]. - Total assets increased to $7.89 billion as of January 31, 2025, up from $7.59 billion as of October 31, 2024, reflecting a growth of 3.9%[31]. - Cash and cash equivalents at the end of the period were $165.5 million, slightly up from $162.1 million at the beginning of the year[32]. - The company reported an increase in inventories to $1.22 billion, up from $1.17 billion, indicating a rise of 3.5%[31]. - HEICO's total current liabilities decreased to $618.3 million from $663.9 million, a reduction of 6.8%[31]. Debt and Financial Strategy - HEICO executed acquisitions totaling approximately $255 million during the quarter, without significantly increasing leverage[7]. - The total debt to net income ratio decreased to 4.15x as of January 31, 2025, down from 4.34x as of October 31, 2024[8]. - HEICO's total debt as of January 31, 2025, was $2.35 billion, with a net debt of $2.19 billion after accounting for cash and cash equivalents[34]. - The company maintains a disciplined financial strategy focused on maximizing long-term shareholder value through strategic acquisitions and organic growth initiatives[9]. Sales Growth and Market Demand - The Flight Support Group's net sales increased 15% to $713.2 million, with a 13% organic growth driven by aftermarket replacement parts[11][10]. - The Electronic Technologies Group's net sales rose 16% to $330.3 million, reflecting strong demand for defense, space, and aerospace products[15][14]. - HEICO anticipates continued net sales growth in fiscal 2025, driven by strong organic demand and recent acquisitions[9]. Tax Benefits - The company recognized a discrete tax benefit of $27.2 million from stock option exercises, increasing net income attributable to HEICO by $26.5 million, or $0.19 per share[30]. Acquisitions - The company made acquisitions totaling $254.8 million during the quarter, significantly higher than $46.2 million in the same period last year[32].