Investors interested in Aerospace stocks should always be looking to find the best-performing companies in the group. Is Heico Corporation (HEI) one of those stocks right now? 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 our Aerospace group, which includes 46 different companies and currently sits at #1 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector grou ...

It has been about a month since the last earnings report for Heico Corporation (HEI) . Shares have added about 7.4% 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. HEICO's Q3 Earnings Surpass Estimates, Sales In ...

Group 1: Buffett's Investment Strategy - Warren Buffett, known for his value investing style, made new positions in two stocks in Q2 2024: Heico and Ulta Beauty [2][3] - Heico shares were purchased at 1.04 million shares, while Ulta Beauty saw over 690,000 shares acquired [2] Group 2: Valuation Metrics - Ulta Beauty trades at a Price/Earnings (P/E) trailing 12 months (TTM) of 15.93X, compared to the industry average of 10.30X [3] - Heico's P/E (TTM) stands at 74.59X, significantly higher than the industry average of 33.23X [3] - Chubb trades at a P/E (TTM) of 12.10X versus the industry average of 15.58X, while Occidental Petroleum trades at 14.46X against an industry average of 13.73X [6] Group 3: Additional Investments - Buffett increased his position in Chubb by 4.3%, making it Berkshire's ninth-largest holding [4] - He also acquired 2.43 million shares of Liberty SiriusXM Group Class A and 4.52 million shares of Class C, along with 96.2 million shares of Sirius XM, raising Berkshire's stake by over 262% [5] Group 4: ETF Recommendations - For investors concerned about overvaluation, ETFs like TCW Compounders ETF GRW and SPDR S&P Aerospace & Defense ETF (XAR) are suggested for Heico [4] - Ulta has a 4.66% weight in Neuberger Berman Next Generation Connected Consumer ETF (NBCC) [4] - Occidental-heavy ETFs include Texas Capital Texas Oil Index ETF (OILT) and First Trust Nasdaq Oil & Gas ETF (FTXN) [7]

Financial Performance - Consolidated net sales for the first nine months of fiscal 2024 increased by 40% to a record $2,844.0 million, up from $2,031.7 million in the same period of fiscal 2023[87]. - The Flight Support Group (FSG) net sales rose by 67% to $1,947.6 million, driven by $625.5 million from acquisitions and 13% organic growth[87]. - The Electronic Technologies Group (ETG) net sales increased by 5% to $927.4 million, with $39.4 million contributed by acquisitions, despite a 1% organic decline[87]. - Consolidated net sales increased by 37% to a record $992.2 million in Q3 fiscal 2024, up from $722.9 million in Q3 fiscal 2023, driven by a 68% increase in FSG net sales[99]. - Net income attributable to HEICO increased by 25% to a record $374.4 million, or $2.67 per diluted share, in the first nine months of fiscal 2024[97]. - Net income attributable to HEICO increased by 34% to a record $136.6 million, or $0.97 per diluted share, in Q3 fiscal 2024, up from $102.0 million, or $0.74 per diluted share, in Q3 fiscal 2023[109]. Profitability and Margins - Consolidated gross profit margin improved to 39.0% in the first nine months of fiscal 2024, up from 38.8% in the same period of fiscal 2023[88]. - Gross profit margin improved to 39.2% in Q3 fiscal 2024, up from 38.6% in Q3 fiscal 2023, reflecting increases in both ETG and FSG margins[100]. - Consolidated operating income increased by 39% to a record $605.8 million, with the FSG's operating income rising by 61% to $438.6 million[91]. - Operating income increased by 45% to a record $216.4 million in Q3 fiscal 2024, up from $149.4 million in Q3 fiscal 2023, with FSG operating income rising by 72%[103]. Expenses and Liabilities - Interest expense rose significantly to $113.9 million in the first nine months of fiscal 2024, compared to $29.6 million in the same period of fiscal 2023, primarily due to increased debt from acquisitions[94]. - Consolidated SG&A expenses rose to $172.8 million in Q3 fiscal 2024, compared to $129.4 million in Q3 fiscal 2023, but as a percentage of net sales, it decreased to 17.4% from 17.9%[101][102]. - Interest expense increased to $36.8 million in Q3 fiscal 2024, compared to $12.1 million in Q3 fiscal 2023, primarily due to higher outstanding debt from acquisitions[105]. - Current liabilities decreased to $500,516 from $531,466, reflecting a reduction of about 5.8%[127]. - Noncurrent liabilities decreased to $2,808,168 from $2,895,592, showing a decline of approximately 3.0%[127]. Research and Development - Total new product research and development expenses were $82.8 million in the first nine months of fiscal 2024, up from $68.5 million in the same period of fiscal 2023[88]. - The company continues to focus on introducing new products and services, which is critical for maintaining competitive pricing and sales growth[133]. Tax and Income - The effective tax rate decreased to 17.3% in the first nine months of fiscal 2024, down from 19.0% in the same period of fiscal 2023[95]. - The effective tax rate decreased to 18.0% in Q3 fiscal 2024, down from 18.4% in Q3 fiscal 2023, reflecting prior year impacts of non-deductible acquisition expenses[107]. - Net income from consolidated operations for the nine months ended July 31, 2024, was $387,785, compared to $363,655 attributable to HEICO, indicating a growth in profitability[129]. Cash Flow and Assets - Net cash provided by operating activities increased by 55% to $466.7 million in the first nine months of fiscal 2024, up from $300.4 million in the same period of fiscal 2023[115]. - As of July 31, 2024, current assets increased to $1,607,679, up from $1,440,062 as of October 31, 2023, representing an increase of approximately 11.7%[127]. - The amount due from non-guarantor subsidiaries increased to $207,541 from $182,795, indicating a rise of approximately 13.5%[127]. - Redeemable noncontrolling interests decreased to $238,357 from $252,013, a decline of about 5.4%[127]. Future Outlook and Risks - The company remains optimistic about achieving net sales growth in both FSG and ETG, driven by acquisitions and sustained product demand[110]. - The company anticipates potential risks related to public health threats and market demand fluctuations, which could impact future performance[131]. - The management confirmed that there have been no changes in internal control over financial reporting that materially affected the company during the third quarter[138].

The company reported a choppy quarter, but the long-term thesis is intact. Heico (HEI -1.90%) reported mixed results in its fiscal third quarter, beating earnings primarily thanks to a lower-than-expected tax rate. Investors were largely put off by the news, sending Heico shares down as much as 6% at the open and 3% as of 10:30 a.m. ET. Strong aerospace, muted electronics Heico is a maker of electronics and other components for a variety of industries, with an emphasis on aerospace. The company earned $0.97 ...

Group 1 - Heico Corp reported a mixed fiscal third-quarter performance, with earnings exceeding Wall Street estimates but revenue falling short of expectations despite strong organic growth in the Flight Support Group segment [1] - The stock is currently trading at $238.74, down 2.9%, and remains close to its record high of $258.84 achieved on August 15, reflecting a year-to-date gain of 32.6% [2] - The stock has shown strong bullish sentiment, with a 50-day call/put volume ratio of 7.26, indicating that bullish bets have dominated over the last 10 weeks [3] Group 2 - The 60-day moving average is providing support for the stock during the current pullback, with the stock having closed below this trendline only a few times since the beginning of 2024 [2] - Heico's stock performance is notable as it has maintained a strong position in the market, with bullish options activity suggesting investor confidence [3]

Heico Corporation (HEI) came out with quarterly earnings of $0.97 per share, beating the Zacks Consensus Estimate of $0.91 per share. This compares to earnings of $0.77 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 6.59%. A quarter ago, it was expected that this company would post earnings of $0.80 per share when it actually produced earnings of $0.88, delivering a surprise of 10%. Over the last four quarters, the company h ...

For the quarter ended July 2024, Heico Corporation (HEI) reported revenue of $992.25 million, up 37.3% over the same period last year. EPS came in at $0.97, compared to $0.77 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $986.55 million, representing a surprise of +0.58%. The company delivered an EPS surprise of +6.59%, with the consensus EPS estimate being $0.91. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall ...

Financial Performance - Net sales increased 37% to a record $992.2 million in Q3 2024, up from $722.9 million in Q3 2023[2] - Operating income increased 45% to a record $216.4 million in Q3 2024, up from $149.4 million in Q3 2023[2] - Net income increased 34% to a record $136.6 million in Q3 2024, up from $102.0 million in Q3 2023[1] - EBITDA increased 45% to $261.4 million in Q3 2024, up from $179.8 million in Q3 2023[3] - Net sales for Q3 2024 increased to $992.2 million, up 37.2% from $722.9 million in Q3 2023[25] - Net income attributable to HEICO for Q3 2024 rose to $136.6 million, a 33.9% increase from $102.0 million in Q3 2023[25] - Operating income for Q3 2024 reached $216.4 million, a 44.9% increase from $149.4 million in Q3 2023[25] - Net sales for the nine months ended July 31, 2024, totaled $2.84 billion, up 40.0% from $2.03 billion in the same period in 2023[26] - Net income attributable to HEICO for the nine months ended July 31, 2024, was $374.4 million, a 24.7% increase from $300.2 million in the same period in 2023[26] - Net income attributable to HEICO for the nine months ended 2024 increased to $374,421K from $300,170K in 2023, a growth of 24.7%[35] - EBITDA for the nine months ended 2024 rose to $738,253K from $524,094K in 2023, an increase of 40.9%[35] - Net income attributable to HEICO for the three months ended July 31, 2024, was $136,577K, up from $102,023K in 2023, a 33.9% increase[35] - EBITDA for the three months ended July 31, 2024, reached $261,415K, compared to $179,804K in 2023, a 45.4% rise[35] - Trailing twelve months EBITDA as of July 31, 2024, was $972,469K, up from $758,310K as of October 31, 2023, a 28.2% increase[35] Flight Support Group Performance - Flight Support Group's net sales increased 68% to a record $681.6 million in Q3 2024, up from $405.0 million in Q3 2023[9] - Flight Support Group's operating income increased 72% to a record $153.6 million in Q3 2024, up from $89.2 million in Q3 2023[10] - Flight Support Group's net sales surged to $681.6 million in Q3 2024, a 68.3% jump from $405.0 million in Q3 2023[25] Electronic Technologies Group Performance - Electronic Technologies Group's net sales were $322.1 million in Q3 2024, compared to $325.9 million in Q3 2023[14] - Electronic Technologies Group's operating income increased 2% to $75.8 million in Q3 2024, up from $74.2 million in Q3 2023[15] - Electronic Technologies Group's net sales slightly decreased to $322.1 million in Q3 2024, down 1.1% from $325.9 million in Q3 2023[25] Debt and Liquidity - Total debt to net income ratio improved to 4.73x as of July 31, 2024, down from 6.14x as of October 31, 2023[5] - Net debt to EBITDA ratio improved to 2.11x as of July 31, 2024, down from 3.04x as of October 31, 2023[5] - Net debt as of July 31, 2024, decreased to $2,056,157K from $2,307,030K as of October 31, 2023, a reduction of 10.9%[35] - Total debt to net income attributable to HEICO ratio improved to 4.73 as of July 31, 2024, from 6.14 as of October 31, 2023[35] - Net debt to EBITDA ratio improved to 2.11 as of July 31, 2024, from 3.04 as of October 31, 2023[35] Cash Flow and Assets - Cash and cash equivalents as of July 31, 2024, stood at $202.9 million, up 18.6% from $171.0 million as of October 31, 2023[29] - Total assets as of July 31, 2024, increased to $7.42 billion, up 3.2% from $7.20 billion as of October 31, 2023[29] - Net cash provided by operating activities for the nine months ended July 31, 2024, was $466.7 million, a 55.4% increase from $300.4 million in the same period in 2023[31]

HEICO Corporation (HEI) recently announced that its Flight Support Group has acquired the Aerial Delivery and Descent Devices divisions of Capewell Aerial Systems ("Capewell") for cash. Capewell is a leading provider of proprietary aircraft cockpit emergency egress and aerial delivery products for various commercial aerospace and defense uses. HEICO's Gain From Capewell Acquisition Capewell is a critical supplier to a wide-ranging customer base that includes leading OEMs, end-users and distributors. The com ...