HEICO Corporation (HEI - Free Report) reported first-quarter fiscal 2019 earnings of 58 cents per share, surpassing the Zacks Consensus Estimate of 46 cents. The bottom line rose 20.8% from the prior-year figure of 48 cents. The year-over-year improvement was driven by higher sales in the reported quarter and increase in operating income.
Total Sales
Quarterly net sales of $466.1 million outpaced the Zacks Consensus Estimate of $454 million by 2.67%. The top line also increased 15.3% from
the year-ago quarter’s $404.4 million. The upside can be primarily attributed to the company’s organic growth.
Operational Update
HEICO Corp’s total costs and expenses increased 13.3% year over year to $368.2 million in the reported quarter. The uptick was driven by higher cost of sales, and increased selling, general and administrative expenses.
Segmental Performance
Flight Support Group: Net sales were up 13% year over year to $287.2 million, owing to increased demand and new product offerings within the company’s aftermarket replacement parts and specialty products categories.
Operating income improved 15% year over year to $52.9 million, courtesy of net sales growth and improved gross profit margin, mainly reflecting a more favorable product mix within the specialty products category.
Its operating margin increased to 18.4% in the first quarter of fiscal 2019, up from 18.0% in the first quarter of fiscal 2018.
Electronic Technologies Group: Net sales rose 18% year over year to $184.4 million, majorly owing to increased demand for certain defense, aerospace and space products.
The company’s operating margin improved to 28.0% in the first quarter of fiscal 2019, up from 27.8% in the first quarter of fiscal 2018.
Operating income increased 19% year over year to $51.6 million, largely on account of the quarterly net sales growth and improved gross profit margin.
Financial Details
As of Jan 31, 2019, cash and cash equivalents summed $57.9 million compared with $59.6 million as of Jan 31, 2018.
Long-term debt (net of current maturities) totaled $607.6 million as of Jan 31, 2019, up from $531.6 million as of Jan 31, 2018.
As of Jan 31, 2019, cash provided by operating activities was $49.6 million compared with $51.9 million as of Jan 31, 2018.
Fiscal 2019 Guidance
HEICO Corp estimates fiscal 2019 net sales to grow 9-11%, up from its prior growth estimates of 8-10%.
The company also anticipates net income growth of 11-13% for the fiscal, up from the prior growth estimates of approximately 10%.
Zacks Rank
HEICO Corp. currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Defense Releases
FLIR Systems Inc.’s fourth-quarter 2018 adjusted earnings of 62 cents per share surpassed the Zacks Consensus Estimate of 60 cents by 3.3%. The company carries a Zacks Rank #3 (Hold).
Textron (TXT - Free Report) reported fourth-quarter 2018 adjusted earnings of $1.15 per share from continuing operations, which exceeded the Zacks Consensus Estimate of 98 cents by 17.3%. The company has a Zacks Rank #3.
Hexcel Corporation’s (HXL - Free Report) fourth-quarter 2018 adjusted earnings of 82 cents per share outpaced the Zacks Consensus Estimate of 80 cents by 2.5%. The company carries a Zacks Rank #2 (Buy).
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Zacks Names "Single Best Pick to Double"
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HEICO Corporation (HEI - Free Report) reported first-quarter fiscal 2019 earnings of 58 cents per share, surpassing the Zacks Consensus Estimate of 46 cents. The bottom line rose 20.8% from the prior-year figure of 48 cents. The year-over-year improvement was driven by higher sales in the reported quarter and increase in operating income.
Total Sales
Quarterly net sales of $466.1 million outpaced the Zacks Consensus Estimate of $454 million by 2.67%. The top line also increased 15.3% from
the year-ago quarter’s $404.4 million. The upside can be primarily attributed to the company’s organic growth.
Operational Update
HEICO Corp’s total costs and expenses increased 13.3% year over year to $368.2 million in the reported quarter. The uptick was driven by higher cost of sales, and increased selling, general and administrative expenses.
Segmental Performance
Flight Support Group: Net sales were up 13% year over year to $287.2 million, owing to increased demand and new product offerings within the company’s aftermarket replacement parts and specialty products categories.
Operating income improved 15% year over year to $52.9 million, courtesy of net sales growth and improved gross profit margin, mainly reflecting a more favorable product mix within the specialty products category.
Its operating margin increased to 18.4% in the first quarter of fiscal 2019, up from 18.0% in the first quarter of fiscal 2018.
Electronic Technologies Group: Net sales rose 18% year over year to $184.4 million, majorly owing to increased demand for certain defense, aerospace and space products.
The company’s operating margin improved to 28.0% in the first quarter of fiscal 2019, up from 27.8% in the first quarter of fiscal 2018.
Operating income increased 19% year over year to $51.6 million, largely on account of the quarterly net sales growth and improved gross profit margin.
Financial Details
As of Jan 31, 2019, cash and cash equivalents summed $57.9 million compared with $59.6 million as of Jan 31, 2018.
Long-term debt (net of current maturities) totaled $607.6 million as of Jan 31, 2019, up from $531.6 million as of Jan 31, 2018.
As of Jan 31, 2019, cash provided by operating activities was $49.6 million compared with $51.9 million as of Jan 31, 2018.
Fiscal 2019 Guidance
HEICO Corp estimates fiscal 2019 net sales to grow 9-11%, up from its prior growth estimates of 8-10%.
The company also anticipates net income growth of 11-13% for the fiscal, up from the prior growth estimates of approximately 10%.
Zacks Rank
HEICO Corp. currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Defense Releases
FLIR Systems Inc.’s fourth-quarter 2018 adjusted earnings of 62 cents per share surpassed the Zacks Consensus Estimate of 60 cents by 3.3%. The company carries a Zacks Rank #3 (Hold).
Textron (TXT - Free Report) reported fourth-quarter 2018 adjusted earnings of $1.15 per share from continuing operations, which exceeded the Zacks Consensus Estimate of 98 cents by 17.3%. The company has a Zacks Rank #3.
Hexcel Corporation’s (HXL - Free Report) fourth-quarter 2018 adjusted earnings of 82 cents per share outpaced the Zacks Consensus Estimate of 80 cents by 2.5%. The company carries a Zacks Rank #2 (Buy).
Is Your Investment Advisor Fumbling Your Financial Future?
See how you can more effectively safeguard your retirement with a new Special Report, “4 Warning Signs Your Investment Advisor Might Be Sabotaging Your Financial Future.”
Click to get it free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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