Heico Corporation’s stock has fallen 3.7% since its last earnings report, raising questions about its potential for recovery before the next release.
Miami: So, it’s been about a month since Heico Corporation (HEI) shared its last earnings report. During that time, their shares have dipped by 3.7%, which isn’t great compared to the S&P 500.
Now, the big question is whether this downward trend will keep going until the next earnings report or if Heico is set for a comeback. Let’s quickly recap their latest earnings to see what’s been happening.
In their fourth-quarter report for fiscal 2024, Heico posted earnings per share of 99 cents, beating expectations of 97 cents. That’s a solid jump from 74 cents in the same quarter last year.
For the whole fiscal year, they reported adjusted earnings of $3.67 per share, which is a nice 26.1% increase from $2.91 the previous year.
When it comes to sales, Heico’s net sales rose by 8.3% year over year to $1.01 billion, although they missed the expected $1.04 billion by a bit.
This growth was mainly thanks to strong results from their Flight Support Group and contributions from recent acquisitions.
For the entire fiscal year, their net sales hit $3.86 billion, marking a 30% increase from $2.97 billion the year before.
On the operational side, Heico’s cost of sales went up by 8.4% to $620 million, while their selling and administrative expenses saw a slight rise to $175.3 million.
Interestingly, their interest expenses dropped by 18.5%, which is a positive sign.
Looking at their segments, the Flight Support Group saw net sales jump 15% to $691.8 million, driven by strong organic growth and acquisitions.
However, the Electronic Technologies Group faced a slight decline in sales, down 1.8% to $336.2 million, mainly due to lower sales in defense and electronics.
As of October 31, 2024, Heico had $162.1 million in cash, down from $171 million a year earlier. But their cash flow from operations was up significantly, showing a 49.8% increase.
They also reduced their long-term debt from $2.46 billion to $2.23 billion, which is a good move.
Looking ahead, estimates for Heico have remained steady over the past month. They currently hold a Zacks Rank of #3, which suggests a hold position, indicating we might see steady returns in the coming months.
