Heico (NYSE:HEI) Releases Earnings Results, Beats Estimates By $0.16 EPS

Heico (NYSE:HEI) posted its quarterly earnings data on Tuesday. The aerospace company reported $1.67 earnings per share for the quarter, beating the consensus estimate of $1.51 by $0.16, Zacks reports. Heico had a return on equity of 18.41% and a net margin of 16.38%.The company had revenue of $1.41 billion during the quarter, compared to analysts’ expectations of $1.36 billion. During the same period in the prior year, the business earned $1.26 earnings per share. Heico’s revenue for the quarter was up 23.1% compared to the same quarter last year.

Heico Stock Performance

Shares of NYSE:HEI opened at $346.82 on Thursday. The company has a debt-to-equity ratio of 0.53, a current ratio of 2.92 and a quick ratio of 1.36. The business’s fifty day moving average price is $353.86 and its two-hundred day moving average price is $321.38. Heico has a fifty-two week low of $256.11 and a fifty-two week high of $376.86. The stock has a market capitalization of $48.44 billion, a price-to-earnings ratio of 57.71, a price-to-earnings-growth ratio of 3.54 and a beta of 1.04.

Heico Announces Dividend

The business also recently declared a dividend, which was paid on Wednesday, July 15th. Investors of record on Wednesday, July 1st were paid a $0.13 dividend. The ex-dividend date of this dividend was Wednesday, July 1st. This represents a yield of 7.0%. Heico’s payout ratio is currently 4.64%.

Insider Activity

In related news, CAO Bradley K. Rowen sold 1,326 shares of Heico stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $241.63, for a total transaction of $320,401.38. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 4.86% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the company. VARCOV Co. bought a new stake in shares of Heico during the fourth quarter worth $277,000. Abel Hall LLC bought a new position in shares of Heico in the fourth quarter valued at about $216,000. PCM Encore LLC bought a new position in shares of Heico in the fourth quarter valued at about $220,000. Wealthspire Advisors LLC lifted its position in Heico by 346.3% during the 4th quarter. Wealthspire Advisors LLC now owns 665 shares of the aerospace company’s stock worth $215,000 after buying an additional 516 shares in the last quarter. Finally, DSM Capital Partners LLC bought a new position in shares of Heico in the fourth quarter worth about $248,000. Institutional investors own 27.12% of the company’s stock.

Heico News Summary

Here are the key news stories impacting Heico this week:

• Positive Sentiment: HEICO’s third-quarter revenue rose 23% year over year to $1.41 billion, exceeding the $1.35 billion consensus estimate. Earnings per share reached $1.67, beating expectations of $1.51 and increasing from $1.26 a year earlier. HEICO Corporation Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Profitability was especially strong: net income increased 33% to a record $235.4 million, while operating income climbed 34%. Consolidated organic sales growth reached 14%, indicating that gains extended beyond acquisitions. HEICO Reports Record Fiscal Third-Quarter Results
• Positive Sentiment: HEICO subsidiary VPT expanded distribution through DigiKey for its military, avionics and space power-conversion products. The move could improve product accessibility and support future sales, although the near-term financial effect is likely limited. VPT Products Now Available on DigiKey
• Neutral Sentiment: The quarterly beat was driven by continued aerospace and defense demand, along with acquisitions. Investors will likely focus on whether HEICO can sustain its growth rate and margins in coming quarters. HEICO Third-Quarter Revenue Climbs
• Negative Sentiment: Despite the earnings beat, HEI trades at a high valuation, with a price-to-earnings ratio near 62 and a price-to-earnings-growth ratio of 3.56. That premium may be encouraging profit-taking and raising the bar for future earnings surprises.

Analyst Ratings Changes

Several analysts have issued reports on the stock. Morgan Stanley set a $370.00 price target on shares of Heico in a research report on Wednesday, July 15th. Deutsche Bank Aktiengesellschaft set a $421.00 price target on Heico and gave the company a “buy” rating in a report on Wednesday, August 19th. Rothschild & Co Redburn set a $360.00 price objective on Heico and gave the stock a “buy” rating in a report on Wednesday, May 13th. UBS Group reaffirmed a “neutral” rating and issued a $390.00 target price (up from $371.00) on shares of Heico in a research report on Monday, June 1st. Finally, Weiss Ratings upgraded shares of Heico from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, July 16th. Three research analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $378.29.

Heico Company Profile

HEICO Corporation is an aerospace, defense and electronics company that designs, manufactures, and sells a range of products and provides repair and aftermarket services. Headquartered in Hollywood, Florida, HEICO supplies replacement components, repair services and engineered systems for commercial and business aviation, military and space markets as well as for selected industrial and medical customers. The company’s offerings are focused on sustaining and improving the reliability and availability of complex equipment across its end markets.

HEICO operates through two principal business areas.