HEICO Corporation’s ( HEI Quick Quote HEI - Free Report) fourth-quarter fiscal 2021 earnings per share (EPS) of 62 cents surpassed the Zacks Consensus Estimate of 57 cents by 8.8%. The bottom line improved 37.8% from the prior-year period’s figure of 45 cents. The year-over-year improvement can be attributed to sales and operating income growth witnessed in the fiscal fourth quarter. During fiscal 2021, the company reported EPS of $2.21, which surpassed the Zacks Consensus estimate of $2.16 by 2.3%. The fiscal bottom line however declined by 3.5% compared with the prior fiscal figure. Total Sales
The company’s net sales increased 20% year over year to $509.4 million in the reported quarter, primarily driven by consistent recovery observed in the commercial aerospace market industry.
Moreover, total sales beat the Zacks Consensus Estimate of $506 million by 0.8%.
Heico Corporation Price and Consensus
During fiscal 2021, the company generated revenues of $1.87 billion, which surpassed the Zacks Consensus Estimate of $1.86 by 0.5%. The fiscal sales increased 4% from the prior fiscal figure.
HEICO’s total costs and expenses increased 16.7% year over year to $394.4 million in the quarter under review. The increase was due to higher cost of sales, and selling, general and administrative expenses.
Segmental Performance Flight Support Group: Net sales surged 34% year over year to $260.4 million, driven by enhanced demand for its commercial aerospace products across all product lines and the impact from its profitable fiscal 2021 acquisitions. Operating income soared 126% year over year to $48.6 million on net sales growth and an improved gross profit margin. Further, its operating margin expanded a massive 760 basis points (bps) to 18.7% compared with 11.1% in the prior-year period. Electronic Technologies Group: The segment’s net sales climbed 7% to $253 million in the quarter under review, driven by organic growth, and benefits from fiscal 2020 and 2021 acquisitions. The segment reported an operating income improvement of 4% year over year to $76.9 million, primarily on net sales growth. However, the company’s operating margin contracted 80 bps to 30.4%. Financial Details
As of Oct 31, 2021, HEICO’s cash and cash equivalents totaled $108.3 million compared with $406.9 million as of Oct 31, 2020.
Cash flow provided by operating activities was $444.1 million at the end of fiscal 2021, reflecting 8.5% growth from the prior-year period. HEICO reported long-term debt (net of current maturities) of $235 million as of Oct 31, 2021, down from $738.8 million as of Oct 31, 2020. Zacks Rank
HEICO currently carries a Zacks Rank #3 (Hold). You can see
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