HEICO Reports Q3 Earnings of 53 Cents per Share

After the closing bell on Wednesday, HEICO (HEI) reported fiscal Q3 earnings of 53 cents per share. That was inline with Wall Street’s consensus. The company’s operating margin was 19.4%. The company earned 49 cents per share in the third quarter of last year. Quarterly net sales rose 10% to $391.5 million.

Laurans A. Mendelson, HEICO’s Chairman and CEO, commented on the Company’s third quarter and year-to-date results stating, “HEICO’s operating segments have continued to execute at a high level of profitable performance and I am very pleased with the record financial results. These outstanding results reflect record net sales and operating income for the first nine months of fiscal 2017 within both the Flight Support Group and Electronic Technologies Group, achieved through increased demand for the majority of our products. Additionally, our subsidiaries continue to deliver strong cash flows in support of our overall corporate strategy of high cash flow generation.

We recently announced our largest acquisition in history when we entered into an agreement to acquire AeroAntenna Technology, Inc., (“AAT”). Closing, which is subject to governmental approval and standard closing conditions, is expected to occur during the fourth quarter of fiscal 2017 and we expect the acquisition to be accretive to our earnings per share within the first twelve months following closing. We plan to fund our acquisition of AAT through our existing credit facility and available cash.

HEICO also raised their guidance for full-year earnings. They previously expected full-year net income growth of 12% to 14%. They now expect net income growth of 14% to 16%. Last year, HEICO made $1.86 per share. Shares count is up 1.8% this year, so factoring that, the guidance implies $2.08 to $2.12 per share. HEICO has already made $1.53 per share through the first three quarters, so that implies Q4 earnings of 55 to 59 cents per share.

Wall Street had been expecting 55 cents for Q3 and $2.09 for the entire year. The stock is down about 1.4% in after-hours trading.

Posted by on August 23rd, 2017 at 4:57 pm


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