Heico (NYSE:HEI) Announces Earnings Results, Beats Expectations By $0.16 EPS

Heico (NYSE:HEI) issued its earnings results on Tuesday. The aerospace company reported $1.67 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.51 by $0.16, Zacks reports. The business had revenue of $1.41 billion during the quarter, compared to analyst estimates of $1.35 billion. Heico had a return on equity of 17.52% and a net margin of 16.08%.Heico’s revenue for the quarter was up 23.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.26 earnings per share.

Heico Trading Down 0.4%

NYSE:HEI opened at $351.19 on Wednesday. The firm has a market capitalization of $49.05 billion, a P/E ratio of 62.71, a P/E/G ratio of 3.56 and a beta of 1.04. The company has a quick ratio of 1.36, a current ratio of 2.92 and a debt-to-equity ratio of 0.53. The company has a fifty day moving average of $353.68 and a 200 day moving average of $321.20. Heico has a 52 week low of $256.11 and a 52 week high of $376.86.

Heico Announces Dividend

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

Insider Transactions at Heico

In other news, CAO Bradley K. Rowen sold 1,326 shares of the company’s 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 the SEC website. 4.86% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Two Sigma Investments LP lifted its holdings in Heico by 0.6% in the 3rd quarter. Two Sigma Investments LP now owns 558,661 shares of the aerospace company’s stock worth $180,347,000 after buying an additional 3,166 shares during the period. CI Investments Inc. raised its holdings in shares of Heico by 40.0% during the fourth quarter. CI Investments Inc. now owns 164,036 shares of the aerospace company’s stock valued at $53,080,000 after acquiring an additional 46,846 shares in the last quarter. Balyasny Asset Management L.P. raised its holdings in shares of Heico by 263.2% during the third quarter. Balyasny Asset Management L.P. now owns 60,469 shares of the aerospace company’s stock valued at $19,521,000 after acquiring an additional 43,821 shares in the last quarter. Oribel Capital Management LP lifted its stake in Heico by 45.8% in the third quarter. Oribel Capital Management LP now owns 43,900 shares of the aerospace company’s stock worth $14,172,000 after acquiring an additional 13,800 shares during the period. Finally, PDT Partners LLC lifted its stake in Heico by 52.6% in the second quarter. PDT Partners LLC now owns 39,019 shares of the aerospace company’s stock worth $12,798,000 after acquiring an additional 13,443 shares during the period. Hedge funds and other institutional investors own 27.12% of the company’s stock.

Key Headlines Impacting Heico

Here are the key news stories impacting Heico this week:

• Positive Sentiment: Heico reported record third-quarter net income of $235.4 million, or $1.67 per diluted share, up 33% from $1.26 a year earlier. Earnings exceeded the $1.51 consensus estimate by $0.16. HEICO Corporation Reports Record Net Income
• Positive Sentiment: Revenue increased 23.1% year over year to approximately $1.41 billion, beating analysts’ $1.35 billion forecast. Record operating income and sales reflect strong demand across the company’s aerospace and defense businesses. Heico Corporation Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Consolidated organic sales growth reached 14%, while acquisitions also contributed to the overall increase. For the first nine months, net income rose 31% to a record $659.4 million, reinforcing the company’s earnings momentum. Heico 3Q Revenue Climbs on Increased Demand, Acquisitions
• Positive Sentiment: The results suggest that demand for aerospace replacement parts, defense products and related services remains resilient, a favorable backdrop for future revenue and earnings. Heico Beats Estimates on Aerospace and Defense Demand
• Neutral Sentiment: Despite the strong report, Heico trades at a high valuation, with a price-to-earnings ratio above 60 and shares near their 52-week high. That leaves the stock more sensitive to profit-taking or any slowdown in growth.

Analysts Set New Price Targets

HEI has been the topic of several research reports. Deutsche Bank Aktiengesellschaft set a $421.00 price target on shares of Heico and gave the stock a “buy” rating in a research note on Wednesday, August 19th. UBS Group reaffirmed a “neutral” rating and set a $390.00 target price (up from $371.00) on shares of Heico in a report on Monday, June 1st. Truist Financial upgraded shares of Heico to a “strong-buy” rating in a research report on Friday, May 1st. Royal Bank Of Canada boosted their price target on shares of Heico from $375.00 to $390.00 and gave the stock an “outperform” rating in a research note on Friday, May 29th. Finally, Rothschild & Co Redburn set a $360.00 price target on shares of Heico and gave the company a “buy” rating in a research report on Wednesday, May 13th. Three analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $379.56.

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.