HEICO Earns 62 Cents per Share

After the close today, HEICO (HEI) reported Q4 earnings of 62 cents per share. That’s up from 52 cents per share in last year’s Q4. HEICO doesn’t give per-share guidance but I ballparked their guidance at 55 to 59 cents per share. The consensus on Wall Street was for 57 cents per share, so this was a very good quarter for HEICO.

For the fiscal year, HEICO made $2.14 per share, which is up from $1.83 per share last year.

Quarterly sales rose 18% to $421.2 million. Operating margin increased to 21.2%. Laurans A. Mendelson, HEICO’s Chairman and CEO, said:

HEICO’s record fiscal 2017 fourth quarter and full year results were principally driven by continued organic growth, exemplary execution by our subsidiaries and the acquisition of profitable, well-managed businesses within both our Electronic Technologies Group and Flight Support Group.

(…)

As we look ahead to fiscal 2018, we anticipate net sales growth within the Flight Support Group’s commercial aviation and defense product lines. We also expect growth within the Electronic Technologies Group, principally driven by demand for the majority of our products. During fiscal 2018, we will continue our commitments to developing new products and services, further market penetration, and an aggressive acquisition strategy while maintaining our financial strength and flexibility.

Based on our current economic visibility, we are estimating 10% – 12% growth in full year net sales and in full year net income over fiscal 2017 levels. We anticipate our fiscal year 2018 consolidated operating margin to approximate 20%, depreciation and amortization expense of approximately $75 million, capital expenditures to approximate $50 million and cash flow from operations to approximate $290 million. These estimates exclude the impact of any pending tax reforms that are currently being legislated in Congress. Furthermore, these estimates exclude additional acquired businesses, if any.

Through Monday, HEICO is up 55.48% YTD for us. Moody’s is #1 with a 59.62% gain. If we get a nice bump in tomorrow’s trading, HEICO can slide into first.

Posted by on December 18th, 2017 at 8:25 pm


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