HEI's current ratio at the end of the second quarter of fiscal 2024 was 3.52. The ratio being greater than one indicates the company's ability to meet its future short-term liabilities without difficulties. In the past six months, HEI shares have surged 24.8% compared with its industry's return of 15.9%. Other Stocks to Consider Let's focus on the reasons that make this Zacks Rank #2 (Buy) stock an attractive investment pick at the moment. Solid Growth Projections & Surprise History The Zacks Consensus Esti ...

The Aerospace group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Heico Corporation (HEI) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Aerospace sector should help us answer this question. Over the past 90 days, the Zacks Consensus Estimate for HEI's full-year earnings has moved 2.1% higher. This signals that analyst sentiment is improving and the stock' ...

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].

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 year-over-year upside was driven by increased sales volume from both the Flight Support Group and Electric Technologies Group segments. 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 E ...

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 ...

The Aerospace group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Heico Corporation (HEI) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Aerospace peers, we might be able to answer that question. Heico Corporation is a member of the Aerospace sector. This group includes 45 individual stocks and currently holds a Zacks Sector Rank of #2. The Zacks Sector Rank includes ...

Analysts on Wall Street project that Heico Corporation (HEI) will announce quarterly earnings of $0.80 per share in its forthcoming report, representing an increase of 5.3% year over year. Revenues are projected to reach $941.61 million, increasing 36.9% from the same quarter last year. The consensus EPS estimate for the quarter has been revised 0.8% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates duri ...