Financial Performance - Consolidated net sales for the first six months of fiscal 2024 increased by 41% to a record $1,851.8 million, up from $1,308.8 million in the same period of fiscal 2023[83]. - The Flight Support Group (FSG) net sales increased by 66% to $1,265.9 million, with $408.7 million contributed by acquisitions and strong organic growth of 12%[83]. - The Electronic Technologies Group (ETG) net sales increased by 9% to $605.3 million, including $39.4 million from acquisitions and organic growth of $26.6 million[83]. - Consolidated operating income rose by 36% to a record $389.4 million, driven by a $101.4 million increase in FSG operating income and a $6.1 million increase in ETG operating income[88]. - Net income attributable to HEICO increased by 20% to a record $237.8 million, or $1.70 per diluted share, compared to $198.1 million, or $1.43 per diluted share, in the first six months of fiscal 2023[94]. - Consolidated operating income rose by 33% to a record $209.2 million in Q2 fiscal 2024, up from $157.1 million in Q2 fiscal 2023, with FSG's operating income increasing by 49%[100]. - Net income attributable to HEICO increased by 17% to $123.1 million, or $0.88 per diluted share, in Q2 fiscal 2024, compared to $105.1 million, or $0.76 per diluted share, in Q2 fiscal 2023[106]. Expenses and Margins - Consolidated gross profit margin was 38.8% in the first six months of fiscal 2024, slightly down from 39.0% in the same period of fiscal 2023[84]. - Selling, general and administrative (SG&A) expenses increased to $329.2 million, up from $223.8 million, primarily due to acquisitions and costs associated with net sales growth[85]. - Consolidated gross profit margin improved to 38.9% in Q2 fiscal 2024, up from 38.7% in Q2 fiscal 2023, driven by a 1.7% increase in ETG's gross profit margin[97]. - Consolidated SG&A expenses increased to $162.6 million in Q2 fiscal 2024, compared to $109.4 million in Q2 fiscal 2023, primarily due to $30.8 million related to acquisitions[98]. - The FSG's operating income as a percentage of net sales decreased to 22.5% in the first six months of fiscal 2024, down from 24.0% in the same period of fiscal 2023[89]. - Consolidated operating income as a percentage of net sales was 21.9% in Q2 fiscal 2024, down from 22.8% in Q2 fiscal 2023[101]. Interest and Tax - Interest expense increased significantly to $77.1 million in the first six months of fiscal 2024, compared to $17.4 million in the same period of fiscal 2023, due to higher outstanding debt from acquisitions[90]. - Interest expense increased to $38.5 million in Q2 fiscal 2024, compared to $11.4 million in Q2 fiscal 2023, due to higher outstanding debt from acquisitions[102]. - The effective tax rate decreased to 16.9% in the first six months of fiscal 2024, down from 19.3% in the same period of fiscal 2023, reflecting a larger tax benefit from stock option exercises[92]. - Effective tax rate remained stable at 21.2% for both Q2 fiscal 2024 and Q2 fiscal 2023[104]. Cash Flow and Investments - Net cash provided by operating activities was $252.8 million in the first six months of fiscal 2024, an increase of $98.4 million from $154.4 million in the same period of fiscal 2023[111]. - Net cash used in investing activities totaled $85.3 million in the first six months of fiscal 2024, primarily for acquisitions of $46.2 million[112]. - Anticipated capital expenditures for fiscal 2024 are approximately $60 to $65 million[108]. Risks and Challenges - The company anticipates potential risks related to public health threats, such as the COVID-19 pandemic, which may impact financial performance[128]. - Liquidity and cash generation timing are critical factors that could affect the company's operations and financial condition[128]. - Lower demand for goods and services may arise from reduced commercial air travel and changes in airline purchasing decisions[128]. - The company faces challenges in introducing new products and services at profitable pricing levels, which could hinder sales growth[131]. - Product development and manufacturing difficulties may lead to increased costs and delays in sales[131]. - Cybersecurity events or disruptions in information technology systems could adversely affect business operations[131]. - The ability to make acquisitions and achieve operating synergies is essential for future growth, subject to regulatory approvals[131]. - Economic conditions, including inflation effects, may negatively impact costs and revenues across various industries[131]. - There have been no material changes in the company's sensitivity to market risk as disclosed in the Annual Report for the year ended October 31, 2023[132].

Core Insights - HEICO Corporation's second-quarter fiscal 2024 earnings per share (EPS) of 88 cents exceeded the Zacks Consensus Estimate of 80 cents by 10% and improved 15.8% from the prior-year quarter's 76 cents [1] Total Sales - The company's net sales increased 38.9% year over year to $955.4 million, surpassing the Zacks Consensus Estimate of $944 million by 1.3% [2] Operational Update - HEICO's cost of sales rose 38.5% year over year to $583.6 million, while selling, general and administrative expenses increased 48.6% to $162.6 million [3] - Interest expense surged 238.6% to $38.5 million from $11.4 million in the prior-year quarter [3] Segmental Performance - Flight Support Group: Net sales surged 65% year over year to $647.2 million, driven by strong organic growth of 12% and fiscal 2024 acquisitions; operating income increased 49% to $148.9 million [4] - Electronic Technologies Group: Net sales rose 6% to $319.3 million, primarily due to organic growth of 4%; operating income increased 11% to $75.3 million [4][5] Financial Details - As of April 30, 2024, HEI's cash and cash equivalents totaled $204.2 million, up from $171 million as of October 31, 2023 [6] - Cash flow from operating activities was $252.8 million for the six months ending April 30, 2024, reflecting a 63.7% increase from the prior-year period [6] - Long-term debt decreased to $2.39 billion from $2.46 billion as of October 31, 2023 [6]

Financial Data and Key Metrics Changes - Consolidated net income increased 17% to a record $123.1 million or $0.88 per diluted share in Q2 fiscal '24, up from $105.1 million or $0.76 per diluted share in Q2 fiscal '23 [5] - Consolidated EBITDA increased 35% to $252.4 million in Q2 fiscal '24, up from $187.2 million in Q2 fiscal '23, with an EBITDA margin of 26.4% [5][25] - Cash flow from operating activities increased 82% to $141.1 million in Q2 fiscal '24, up from $77.8 million in Q2 fiscal '23 [25] Business Line Data and Key Metrics Changes - Flight Support Group (FSG) net sales increased 65% to a record $647.2 million in Q2 fiscal '24, driven by 12% organic growth and contributions from acquisitions [110] - FSG operating income increased 49% to a record $148.9 million in Q2 fiscal '24, reflecting net sales growth [7] - Electronic Technologies Group (ETG) net sales increased 6% to $319.3 million in Q2 fiscal '24, with 4% organic growth mainly from defense and aerospace products [112] Market Data and Key Metrics Changes - The overall market remains strong, with broad-based strength observed across the Americas, Europe, Asia, and the Middle East, driven by increased demand for air travel [77] - The defense-related products segment is expected to see net sales growth supported by a strong backlog [10][28] Company Strategy and Development Direction - The company plans to continue its commitment to developing new products and services while maintaining financial strength and flexibility [10] - M&A remains a key part of the company's strategy, with ongoing discussions to find suitable acquisition targets [88] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong demand for products and a healthy end market [114] - The company anticipates continued net sales growth in both FSG and ETG, driven by acquisitions and product demand [10][28] Other Important Information - The net debt-to-EBITDA ratio improved to 2.45x as of April 30, '24, down from 3.04x as of October 31, '23 [25] - The company is focused on maintaining its entrepreneurial culture while integrating Wencor and leveraging synergies [134] Q&A Session Summary Question: What is the expected margin for the FSG segment? - Management indicated that while they aspire for a 24% margin, they expect variability and are currently tracking towards the high end of the 21% to 22% range [12][150] Question: What is driving the organic growth in aftermarket parts? - The growth is primarily attributed to volume increases rather than price increases, with pricing contributing less than one-third of the growth [14] Question: How is the integration of Wencor progressing? - The integration is ongoing, with both companies leveraging each other's strengths and product lines, leading to improved sales and operational efficiencies [134][92]

Here is how Heico performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: View all Key Company Metrics for Heico here>>> Heico Corporation (HEI) reported $955.4 million in revenue for the quarter ended April 2024, representing a year-over-year increase of 38.9%. EPS of $0.88 for the same period compares to $0.76 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $943.55 million, representing a surprise of +1.26%. T ...

EXHIBIT 99.1 May 28, 2024 Victor H. Mendelson (305) 374-1745 ext. 7590 Carlos L. Macau, Jr. (954) 987-4000 ext. 7570 HEICO CORPORATION REPORTS RECORD NET SALES (UP 39%), OPERATING INCOME (UP 33%) AND NET INCOME (UP 17%) FOR THE SECOND QUARTER OF FISCAL 2024 HOLLYWOOD, FL and MIAMI, FL -- HEICO CORPORATION (NYSE: HEI.A) (NYSE: HEI) today reported an increase in net income of 17% to a record $123.1 million, or $.88 per diluted share, in the second quarter of fiscal 2024, up from $105.1 million, or $.76 per di ...

For HEI, shares are up 0.82% over the past week while the Zacks Aerospace - Defense Equipment industry is up 1.56% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 5.26% compares favorably with the industry's 7.24% performance as well. While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year ...

Group 1 - Heico Corporation (HEI) is outperforming its Aerospace peers with a year-to-date return of 20.7%, while the Aerospace sector has returned an average of -3.1% [4] - The Zacks Rank for Heico Corporation is 2 (Buy), indicating a positive earnings outlook with a 2.4% increase in the consensus estimate for full-year earnings over the past quarter [3] - Heico Corporation belongs to the Aerospace - Defense Equipment industry, which has an average gain of 14.3% this year, further highlighting its strong performance [5] Group 2 - Another outperforming stock in the Aerospace sector is Leidos (LDOS), which has returned 38.4% year-to-date and has a Zacks Rank of 1 (Strong Buy) [4][5] - The Aerospace - Defense industry, which includes Leidos, has seen a decline of -8.3% since the beginning of the year, contrasting with Heico's performance [6]

Group 1 - Analysts project Heico Corporation (HEI) will announce quarterly earnings of $0.80 per share, a 5.3% increase year over year, with revenues expected to reach $941.61 million, reflecting a 36.9% increase from the same quarter last year [1] - The consensus EPS estimate has been revised 0.8% higher over the last 30 days, indicating a collective reevaluation by analysts covering the stock [2] - Revisions to earnings estimates are crucial indicators for predicting potential investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3] Group 2 - Analysts estimate 'Net Sales- Electronic Technologies Group (ETG)' will reach $346.47 million, a 14.8% increase from the prior-year quarter [5] - The estimated 'Net Sales- Flight Support Group (FSG)' is projected at $601.62 million, indicating a 53.4% increase from the prior-year quarter [5] - Predictions for 'Operating income- Flight Support Group' are $130.67 million, up from $99.91 million reported in the same quarter last year, while 'Operating income- Electronic Technologies Group' is expected to be $75.27 million, compared to $67.98 million in the same quarter of the previous year [6] Group 3 - Heico shares have shown returns of +5.5% over the past month, compared to the Zacks S&P 500 composite's +7.3% change, with a Zacks Rank 2 (Buy) indicating expectations to outperform the overall market in the near future [6]

Wall Street expects a year-over-year increase in earnings on higher revenues when Heico Corporation (HEI) reports results for the quarter ended April 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 28. ...

HAKINMHAN In November 2023, I covered HEICO (NYSE:HEI), maintaining my buy rating with a $211.28 price target. HEI stock is currently trading at $211.36, meaning that it hit my price target. That is why I am revisiting the stock to assess whether there is additional upside for the stock, or whether this is the time to change my rating. HEICO Corp. Stock Price Shows Strength Data by YCharts HEICO has a 10-year stock price development that looks impressive, gaining 650% while the S&P 500 gained 172.6%. So ...