HEICO Beats and Guides Higher

Also after the bell, HEICO (HEI) reported fiscal Q1 earnings of 59 cents per share. That’s five cents higher than expectations. Net sales grew 12% to $343.4 million.

Laurans A. Mendelson, HEICO’s Chairman and CEO, commented on the Company’s first quarter results stating, “We are pleased to report exceptional first quarter year-over-year increases in net sales and operating income within both our Flight Support Group and Electronic Technologies Group. These results principally reflect strong organic growth of 8% within both of our operating segments as well as the excellent performance of our well managed and profitable fiscal 2016 acquisitions.

Cash flow provided by operating activities was strong, increasing 24% to $56.0 million in the first quarter of fiscal 2017, representing 137% of net income, as compared to $45.2 million in the first quarter of fiscal 2016.

Our total debt to shareholders’ equity ratio was 38.3% as of January 31, 2017. Our net debt to shareholders’ equity ratio was 34.1% as of January 31, 2017, with net debt (total debt less cash and cash equivalents) of $371.4 million principally incurred to fund acquisitions in fiscal 2016 and 2015. We have no significant debt maturities until fiscal 2019 and plan to utilize our financial flexibility to aggressively pursue high quality acquisition opportunities to accelerate growth and maximize shareholder returns.

He also said the company is considering a stock split. The best news is that HEICO is raising its outlook for this year. Previously, the company expected sales growth of 5% to 7%, and net income growth of 7% to 10%. Now they see sales growth of 6% to 8%, and net income growth of 9% to 11%.

Posted by on February 28th, 2017 at 4:41 pm

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