HEICO Reports Earnings of 51 Cents per Share

After the bell, HEICO (HEI) reported fiscal Q1 earnings of 51 cents per share. Wall Street had been expecting 48 cents per share. For Q1 of last year, HEICO made 89 cents per share.

HEICO’s operating margin was 19.2% which is good but is down from 21.9% from last year.

Laurans A. Mendelson, HEICO’s Chairman and CEO, commented on the Company’s first quarter results stating, “The COVID-19 global pandemic (the “Pandemic”) continues to impact our operating results. Most notably, demand for our commercial aerospace products and services were negatively impacted in the first quarter of fiscal 2021 mainly due to the continued suppressed demand in global commercial air travel. Consolidated net sales for our commercial aerospace businesses decreased by approximately 43% in the first quarter of fiscal 2021, as compared to the first quarter of fiscal 2020.

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Despite the difficult operating environment created by the Pandemic, HEICO continues to generate excellent cash flow. Cash flow provided by operating activities was very strong, increasing 32% to $107.2 million in the first quarter of fiscal 2021, up from $81.1 million in the first quarter of fiscal 2020.

As we look ahead to the remainder of fiscal 2021, the Pandemic will likely continue to negatively impact the commercial aerospace industry and HEICO. Given this uncertainty, HEICO cannot provide fiscal 2021 net sales and earnings guidance at this time. However, we believe our ongoing fiscal conservative policies, healthy balance sheet, and increased liquidity will permit us to invest in new research and development and gain market share as the industry recovers.

Posted by on February 23rd, 2021 at 4:25 pm


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