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 ...

It's a sure bet that most investors, even those who regularly devour financial media, were until recently not familiar with Heico (HEI 0.60%). The specialty industrial components maker is a decades-old enterprise that operates an unglamorous business and rarely generates attention-grabbing news.Yet it's been quite the outperformer at times, and if anyone likes a solid yet under-the-radar stock, it's Warren Buffett. Heico's relative obscurity ended forever when the master investors at Berkshire Hathaway firs ...

Group 1 - Heico is a key supplier in various industries, generating approximately $3.8 billion in annual sales, with a business split of roughly 2-to-1 between flight support and electronic technologies [5][6] - The company has significantly outperformed the S&P 500 index over its lifetime, primarily due to its strategy of serial acquisitions, having acquired nearly three dozen companies since 1999 [6][8] - Heico's strong management and efficient growth have led to a higher return on equity (ROE) over time, indicating a well-run company that effectively utilizes its financial resources [8][9] Group 2 - Berkshire Hathaway, led by Warren Buffett, has increased its stake in Heico, although this stake represents only about 0.1% of its portfolio, suggesting a cautious approach to investment in this stock [10][12] - Heico's stock currently trades at a forward P/E ratio of 65, with analysts estimating nearly 20% annual earnings growth over the next three to five years, resulting in a PEG ratio of 3.3, which is considered steep [11] - The recent purchase by Berkshire indicates that while Heico may have potential, it is currently viewed as expensive, and investors are advised to keep cash available for potential market declines that could present better buying opportunities [10][12]

Core Viewpoint - Heico Corporation (HEI) is experiencing significant selling pressure, with a 5.9% decline over the past four weeks, but is positioned for a potential trend reversal as it enters oversold territory, supported by analyst expectations of better-than-previously predicted earnings [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) for HEI is currently at 26, indicating that heavy selling may be exhausting, suggesting a possible bounce back towards equilibrium in supply and demand [3]. - A stock is generally considered oversold when its RSI falls below 30, which can signal potential entry opportunities for investors looking to benefit from a rebound [2]. Group 2: Analyst Sentiment and Earnings Estimates - There is a strong consensus among sell-side analysts that HEI will report improved earnings, leading to a 0.1% increase in the consensus EPS estimate over the last 30 days [3]. - HEI holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a favorable outlook for a near-term turnaround [3].

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, but identifying such stocks can be challenging due to inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Heico Corporation (HEI) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth being particularly attractive [4] - Heico's projected EPS growth for the current year is 19.2%, surpassing the industry average of 17.2% [5] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, enabling them to fund new projects without external financing [6] - Heico's year-over-year cash flow growth stands at 23.9%, significantly higher than the industry average of 7.6% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 11.3%, compared to the industry average of 5.4% [7] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [8] - Heico's current-year earnings estimates have been revised upward, with a 0.1% increase in the Zacks Consensus Estimate over the past month [9] Group 5: Overall Assessment - Heico has achieved a Zacks Rank of 2 and a Growth Score of B, indicating its potential as a solid choice for growth investors [10]

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 growth stock that can live up to its true potential can be a tough task. 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, it's pretty easy to find cutting-edge growth stocks with th ...