Heico Earnings: How To Trade It?

Core Insights - Heico is expected to report earnings of $1.12 per share and sales of $1.11 billion, reflecting an increase from the previous year's earnings of $0.97 per share and sales of $992 million [2] - Over the last five years, Heico has experienced negative one-day returns following earnings releases in 53% of cases, with a median drop of -3.1% [1][5] - The company has a current market capitalization of $42 billion and generated $4.0 billion in revenue over the past twelve months, with operating profits of $871 million and net income of $567 million [2] Earnings Reaction History - Historical data shows that there have been 19 earnings data points in the last five years, with 9 positive and 10 negative one-day returns, resulting in positive returns occurring approximately 47% of the time [5] - The median of the 9 positive returns is 0.6%, while the median of the 10 negative returns is -3.1% [5] - The correlation between one-day and five-day post-earnings returns can be utilized for trading strategies, particularly if a strong correlation is identified [3][4] Peer Performance Influence - The performance of peers can impact Heico's stock reaction following earnings, with pricing potentially beginning prior to the earnings announcement [6] - Historical comparisons of Heico's post-earnings performance against peers that released earnings just before it can provide insights into expected stock reactions [6]