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].

Core Insights - Heico Corporation (HEI) is expected to report quarterly earnings of $0.93 per share, reflecting a 13.4% increase year-over-year, with revenues forecasted at $970.82 million, representing an 8.3% increase [1] Earnings Estimates - The consensus EPS estimate for the quarter has remained unchanged over the past 30 days, indicating analysts have not revised their projections [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3] Revenue and Sales Projections - Analysts predict 'Net Sales- Electronic Technologies Group (ETG)' will be $290.78 million, showing a year-over-year increase of 1.7% [5] - The consensus estimate for 'Net Sales- Flight Support Group (FSG)' is $684.77 million, indicating a year-over-year increase of 10.7% [5] Operating Income Forecasts - 'Operating income- Flight Support Group' is expected to reach $150.17 million, up from $136.09 million in the same quarter last year [6] - 'Operating income- Electronic Technologies Group' is projected at $68.65 million, compared to $55.33 million a year ago [6] Stock Performance - Heico shares have returned -5.5% over the past month, contrasting with the Zacks S&P 500 composite's +2.2% change, and the company holds a Zacks Rank 3 (Hold), suggesting it will likely mirror overall market performance in the near future [6]

Financial Performance - Consolidated net sales increased by 30% to a record $3,857.7 million in fiscal 2024, up from $2,968.1 million in fiscal 2023[197]. - Flight Support Group (FSG) net sales rose by 49% to $2,639.4 million, driven by $643.5 million from acquisitions and 13% organic growth[197]. - Electronic Technologies Group (ETG) net sales increased by 3% to $1,263.6 million, with $40.7 million from acquisitions, but a 2% organic decline[197]. - Net income attributable to HEICO increased by 27% to a record $514.1 million, or $3.67 per diluted share, in fiscal 2024[211]. - Operating income reached $697.7 million, while net income from consolidated operations was $559.5 million[242]. - Net income attributable to HEICO was $526.0 million for the fiscal year 2024[242]. - Comprehensive income attributable to HEICO for 2024 was $528,213, compared to $409,915 in 2023, reflecting a 28.9% increase[290]. Operating Income and Expenses - Consolidated operating income increased by 32% to a record $824.5 million, with FSG operating income rising by 53% to $593.1 million[204]. - Total new product research and development expenses rose to $111.3 million in fiscal 2024, up from $95.8 million in fiscal 2023[199]. - Interest expense increased significantly to $149.3 million in fiscal 2024, compared to $73.0 million in fiscal 2023, due to higher outstanding debt[207]. - Effective tax rate decreased to 17.5% in fiscal 2024 from 20.0% in fiscal 2023, reflecting larger tax benefits from stock option exercises[209]. Cash Flow and Debt Management - Net cash provided by operating activities increased by $223.6 million (50%) in fiscal 2024, totaling $672.4 million, up from $448.7 million in fiscal 2023[220]. - Total debt decreased from $2,478.1 million in October 2023 to $2,229.4 million in October 2024, resulting in a total debt to total capitalization ratio of 38%[215]. - The company had approximately $995 million of unused committed availability under its revolving credit facility as of December 18, 2024[217]. - Payments on revolving credit facility amounted to $(365,000), compared to $(989,000) in the previous year, indicating a reduction in debt repayment[306]. Acquisitions and Growth Strategy - The company plans to drive growth through recently completed acquisitions and potential future acquisitions[212]. - The Company completed the acquisition of Wencor Group for a total consideration of $2,054.366 million, including $1,893.114 million in cash and 1,137,628 shares of Class A Common Stock[361][362]. - The acquisition of Wencor contributed approximately $185.7 million to the Company's consolidated net sales and $22.6 million to net income for the fiscal year ended October 31, 2023[364]. - The Company acquired Exxelia International SAS for a total consideration of $503.996 million, which included $515.785 million in cash, net of cash acquired[369]. - The acquisition of Exxelia resulted in approximately $179.0 million in net sales for the fiscal year ended October 31, 2023, with no material impact on net income attributable to HEICO[372]. Inventory and Working Capital - The increase in net working capital in fiscal 2024 was primarily due to a $132.9 million increase in inventories to support an increase in consolidated backlog[220]. - Inventories, net, increased to $1,170,949 in 2024 from $1,013,680 in 2023, indicating a growth of 15.5%[282]. - Total current assets rose to $2,062,292 in 2024, compared to $1,855,342 in 2023, marking an increase of 11.2%[282]. Shareholder Equity and Dividends - As of October 31, 2023, total shareholders' equity increased to $3,193,151 thousand, up from $2,648,306 thousand as of October 31, 2022, representing a growth of approximately 20.6%[301]. - Cash dividends declared were $29,069 thousand, reflecting an increase from $27,370 thousand in the prior year, which corresponds to a growth of approximately 6.2%[301]. - The company reported cash dividends of $0.21 per share for the current year, up from $0.20 per share in the previous year[301]. Financial Position and Assets - Total assets as of October 31, 2024, were $7,592,822, an increase from $7,195,063 as of October 31, 2023[282]. - Current assets, excluding net intercompany receivables, totaled $1,642.3 million, while current liabilities were $546.7 million[242]. - Long-term debt decreased to $2,225,267 in 2024 from $2,460,277 in 2023, a reduction of 9.5%[282]. Revenue Recognition and Accounting Policies - The Company recognizes revenue primarily at a point-in-time, with the majority of revenue recognized upon shipment or delivery of products, reflecting the consideration expected to be received[336]. - The Company tests goodwill for impairment annually, with the option to perform a qualitative assessment first; if impairment is likely, a quantitative test is required[328]. - Customer rebates and credits are accrued as a reduction within net sales based on estimated discount levels, which are updated at least quarterly[332]. - The Company utilizes a cost-to-cost method for recognizing revenue on contracts satisfied over time, measuring progress based on costs incurred relative to total estimated costs[342]. Impairment and Risk Management - The company incurred $7,500 in impairment of intangible assets, which was not reported in the previous year[306]. - The fair value of each reporting unit significantly exceeded its carrying value as of October 31, 2024, indicating no impairment of goodwill[254]. - The company has exposure to interest rate risk with variable rate debt totaling $1,015.0 million as of October 31, 2024[262]. - A hypothetical 10% increase in interest rates would not have a material effect on the company's financial position or cash flows[262].

HEICO Corporation (NYSE:HEI) Q4 2024 Earnings Call Transcript December 18, 2024 9:00 AM ET Company Participants Laurans Mendelson - Chairman and CEO Eric Mendelson - Co-President & President of Flight Support Group Victor Mendelson - Co-President & President of Electronic Technologies Group Carlos Macau - EVP and CFO Conference Call Participants Larry Solow - CJS Securities Scott Mikus - Melius Research Ken Herbert - RBC Capital Markets Gautam Khanna - TD Cowen Sheila Kahyaoglu - Jefferies Scott Deuschle - ...

Group 1 - Heico set records for revenue, net income, and operating income in the fourth quarter, with revenue rising 8% to a record $1.01 billion, but overall sales missed estimates of $1.04 billion, leading to a decline in shares [1] - Net income reached $139.7 million and operating income was $218.6 million, both all-time highs, while earnings per share (EPS) came in at $0.99, exceeding estimates [1] - Sales at the Electronic Technologies Group fell 2% to $336.2 million, attributed to lower defense product sales and slightly lower sales of other electronics products [1] Group 2 - The Flight Support Group experienced a revenue increase of 15% to $691.8 million, driven by higher sales of aftermarket replacement parts and contributions from recent acquisitions [1] - Berkshire Hathaway, led by Warren Buffett, purchased 1.04 million shares of Heico in the second quarter, valued at $185.4 million, and increased its stake to over $200 million in the third quarter [2] - Despite an 8% drop in shares on a specific Wednesday, Heico's stock is up approximately 33% year-to-date [2]

Core Insights - Heico Corporation reported revenue of $1.01 billion for the quarter ended October 2024, reflecting an 8.3% increase year-over-year, but a -2.53% miss against the Zacks Consensus Estimate of $1.04 billion [1] - Earnings per share (EPS) for the quarter was $0.99, up from $0.84 in the same quarter last year, surpassing the consensus estimate of $0.97 by +2.06% [1] Financial Performance Metrics - Net Sales for the Electronic Technologies Group (ETG) were $336.23 million, which is -1.8% lower than the four-analyst average estimate of $351.51 million [3] - Net Sales for the Flight Support Group (FSG) reached $691.78 million, exceeding the average estimate of $701.75 million by +15% year-over-year [3] - Corporate & Intersegment reported net sales of -$14.35 million, worse than the average estimate of -$10.48 million, but showing an +85% year-over-year change [3] - Operating income for the Flight Support Group was $154.51 million, slightly below the estimated $159.48 million [3] - Operating income for Other, primarily corporate, was -$17.68 million, worse than the average estimate of -$14.97 million [3] - Operating income for the Electronic Technologies Group was $81.81 million, below the average estimate of $86.26 million [3] Stock Performance - Heico's shares have returned -2.5% over the past month, contrasting with the Zacks S&P 500 composite's +3.6% change [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [4]

Core Viewpoint - Heico Corporation reported quarterly earnings of $0.99 per share, exceeding the Zacks Consensus Estimate of $0.97 per share, and showing an increase from $0.84 per share a year ago, indicating a positive earnings surprise of 2.06% [1] Financial Performance - Heico's revenues for the quarter ended October 2024 were $1.01 billion, which fell short of the Zacks Consensus Estimate by 2.53%, compared to $936.45 million in the same quarter last year [2] - Over the last four quarters, Heico has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance - Heico shares have appreciated approximately 46.9% since the beginning of the year, outperforming the S&P 500's gain of 27.3% [4] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.94 on revenues of $977.22 million, and for the current fiscal year, it is $4.25 on revenues of $4.2 billion [8] - The estimate revisions trend for Heico is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [7] Industry Context - The Aerospace - Defense Equipment industry, to which Heico belongs, is currently ranked in the top 18% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [9]

Financial Performance - Net income increased 35% to a record $139.7 million, or $0.99 per diluted share, in Q4 FY2024, compared to $103.4 million, or $0.74 per diluted share, in Q4 FY2023[1] - Net sales increased 8% to a record $1,013.7 million in Q4 FY2024, up from $936.4 million in Q4 FY2023[2] - Operating income increased 15% to a record $218.6 million in Q4 FY2024, up from $189.4 million in Q4 FY2023[2] - Operating income for the fiscal year ended October 31, 2024, reached $824,455, up 31.8% from $625,339 in 2023[41] - Net income attributable to HEICO for the fiscal year ended October 31, 2024, was $514,109, representing a 27.4% increase from $403,596 in 2023[41] - Basic net income per share attributable to HEICO shareholders for the fiscal year ended October 31, 2024, was $3.71, compared to $2.94 in 2023, reflecting a 26.2% increase[41] - HEICO's net income attributable to the company for the fiscal year ended October 31, 2024, was $514,109,000, an increase from $403,596,000 in 2023, representing a growth of 27.4%[52] - HEICO's net income attributable to HEICO for the quarter was $139,688,000, up from $103,426,000 in the same quarter of the previous year, marking a 35% increase[54] Cash Flow and Liquidity - Cash flow from operating activities increased 39% to $205.6 million in Q4 FY2024, up from $148.4 million in Q4 FY2023[9] - Cash and cash equivalents at the end of the fiscal year on October 31, 2024, were $162,103, down from $171,048 in 2023[48] - HEICO's cash and cash equivalents were $162,103,000 as of October 31, 2024, contributing to a stronger liquidity position[55] Debt Management - Total debt to net income ratio improved to 4.34x as of October 31, 2024, down from 6.14x as of October 31, 2023[8] - The total debt as of October 31, 2024, was $2,229,374,000, while net debt stood at $2,067,271,000, down from $2,307,030,000 in 2023[55] - The total debt to net income attributable to HEICO ratio was 4.34, indicating a leverage increase compared to the previous year[56] - The net debt to EBITDA ratio improved to 2.06 in 2024, down from 3.04 in 2023, suggesting better debt management[56] Segment Performance - The Flight Support Group's net sales increased 15% to a record $691.8 million in Q4 FY2024, up from $601.7 million in Q4 FY2023[14] - The Flight Support Group's operating income increased 35% to a record $154.5 million in Q4 FY2024, up from $114.6 million in Q4 FY2023[15] - The Electronic Technologies Group's net sales were $336.2 million in Q4 FY2024, compared to $342.5 million in Q4 FY2023[21] - The Electronic Technologies Group's operating income was $81.8 million in Q4 FY2024, compared to $86.4 million in Q4 FY2023[23] - The Flight Support Group generated net sales of $2,639,354 for the fiscal year ended October 31, 2024, a significant increase from $1,770,185 in 2023[41] - The Flight Support Group's operating income for the fiscal year ended October 31, 2024, was $593,074, up from $387,297 in 2023, marking a 53.1% increase[41] Other Financial Metrics - The EBITDA for HEICO in 2024 was $1,002,230,000, compared to $758,310,000 in 2023, reflecting a year-over-year increase of 32.2%[52] - The company incurred acquisition costs related to the Wencor acquisition, which decreased net income attributable to HEICO by approximately $13.6 million during the fourth quarter of fiscal 2023[43] - The company recognized a $13.6 million discrete tax benefit from stock option exercises in the first quarter of fiscal 2024, increasing net income attributable to HEICO by $13.3 million[44] Dividends - The Board declared a semiannual cash dividend of $0.11 per share, marking the 93rd consecutive semiannual cash dividend since 1979[11] Expenses - The company reported a depreciation and amortization expense of $44,685,000 for the quarter, slightly up from $43,728,000 in the prior year[54] - Interest expense for the quarter decreased to $35,406,000 from $43,423,000, indicating improved interest management[54] - Income tax expense for the quarter was $33,000,000, consistent with the previous year's $33,500,000[54]

HEICO Corporation HEI will release its fourth-quarter financial results, after the closing bell, on Tuesday, Dec. 17.Analysts expect the Hollywood, Florida-based retailer to report quarterly earnings at 98 cents per share, up from 74 cents per share in the year-ago period. Heico projects quarterly revenue of $1.03 billion, compared to $936.45 million a year earlier, according to data from Benzinga Pro.On Aug 26, the company reported upbeat earnings for its third quarter.Heico shares gained 0.6% to close at ...

In its upcoming report, Heico Corporation (HEI) is predicted by Wall Street analysts to post quarterly earnings of $0.97 per share, reflecting an increase of 15.5% compared to the same period last year. Revenues are forecasted to be $1.04 billion, representing a year-over-year increase of 11.1%.Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Prior to a co ...