Free Research Report as HEICO Reported Record Breaking Quarter; Revenue and Earnings at an All Time High

LONDON, UK / ACCESSWIRE / January 10, 2018 / Active-Investors.com has just released a free earnings report on HEICO Corp. (NYSE: HEI). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=HEI. HEICO reported its fourth quarter and fiscal 2017 operating results on December 18, 2017. The defense and aerospace contractor outperformed top- and bottom-line expectations and provided guidance for the fiscal year 2018. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, HEICO most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

HEICO’s net sales increased 16% to a record $421.2 million in Q4 FY17, up from $363.3 million in Q4 FY16. The Company’s sales numbers topped analysts’ expectations of $407.7 million. HEICO’s FY17 net sales advanced 11% to a record $1.52 billion compared to $1.38 billion in FY16.

During Q4 FY17, HEICO’s operating income climbed 18% to $89.4 million compared to $76.1 million in Q4 FY16. The Company’s consolidated operating margin improved to 21.2% in the reported quarter, up from 20.9% in the year ago corresponding period.

HEICO reported that net income increased 21% to a record $53.7 million, or $0.62 per diluted share, in Q4 FY17, up from $44.3 million, or $0.52 per diluted share, in Q4 FY16. The Company’s earnings exceeded Wall Street’s estimates of $0.57 per share.

In the fiscal year ended October 31, 2017, the Company’s net income increased 19% to a record $186.0 million, or $2.14 per diluted share, up from $156.2 million, or $1.83 per diluted share, in the fiscal year ended October 31, 2016.

HEICO’s Segment Results

During Q4 FY17, the Flight Support Group’s net sales jumped 12% to $256.9 million, up from $228.5 million in Q4 FY16. The increase reflected aggregate organic growth of 6% in the Company’s aftermarket replacement parts and repair and overhaul parts and services product lines and the impact of its recent profitable acquisitions.

The Flight Support Group’s operating income increased 4% to $46.5 million in Q4 FY17, up from $44.7 million in Q4 FY16. The segment’s operating margin was 18.1% and 19.6% in the fourth quarter of fiscal 2017 and 2016, respectively.

With respect to fiscal 2018, HEICO is forecasting Flight Support Group’s net sales growth of approximately 10% on a y-o-y basis and the full year segment operating margin to be approximately in the range of 18.0% to 18.5%.

For Q4 FY17, Electronic Technologies Group’s net sales surged 22% to a record $169.1 million compared to $138.3 million in Q4 FY16, driven by strong organic growth of 14%, principally from increased demand for its defense, space and aerospace products.

The Electronic Technologies Group’s operating income increased 39% to a record $51.0 million in Q4 FY17, up from $36.8 million in Q4 FY16. The segment’s operating margin improved to 30.2% in the reported quarter versus 26.6% in the year earlier same quarter.

For FY18, HEICO is projecting Electronic Technologies Group’s net sales growth of approximately 12% on a y-o-y basis and anticipate full year segment operating margin to be approximately 27%.

Financial Analysis

HEICO’s total debt to shareholders’ equity ratio was 54.0% as of October 31, 2017. The Company’s net debt to shareholders’ equity ratio was approximately 50% as of October 31, 2017, with net debt of $621.9 million principally incurred to fund acquisitions in fiscal 2017 and 2016.

HEICO’s cash flow provided by operating activities totaled $274.9 million, or 148% of net income, in FY17, up from $249.2 million in FY16. The Company’s cash flow provided by operating activities increased 25% to $95.6 million in the reported quarter, up from $76.8 million in the year earlier same quarter.

HEICO’s Board of Directors declared a $0.0875 per share regular semi-annual cash dividend payable on January 17, 2018. This cash dividend represents a 9% increase over the prior semi-annual per share amount of $0.08 paid in July 2017. The Company noted that considering the impact of cash dividends, prior stock splits and stock dividends, one share of HEICO worth $8.38 in 1990 has become worth on a combined basis approximately $2,122, representing an increase of approximately 253 times the 1990 value and a compound annual growth rate of approximately 23% as of December 15, 2017.

Outlook

For fiscal 2018, HEICO is forecasting 10% to 12% growth in full year net sales and in full year net income over fiscal 2017 levels. The Company is anticipating its FY18 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.

Stock Performance Snapshot

January 09, 2018 – At Tuesday’s closing bell, HEICO’s stock marginally 0.83%, ending the trading session at $97.25.

Volume traded for the day: 238.83 thousand shares, which was above the 3-month average volume of 227.47 thousand shares.

Stock performance in the last month – up 8.48%; previous three-month period – up 8.65%; past twelve-month period – up 57.42%; and year-to-date – up 3.07%

After yesterday’s close, HEICO’s market cap was at $7.32 billion.

Price to Earnings (P/E) ratio was at 45.38.

The stock has a dividend yield of 0.17%.

The stock is part of the Industrial Goods sector, categorized under the Aerospace/Defense Products & Services industry. This sector was up 0.6% at the end of the session.

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