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Shares of HEICO Corporation (HEI - Free Report) slipped 0.1% to reach $174.56 on Mar 3, 2023, following its first-quarter fiscal 2023 results’ release.
The company’s first-quarter fiscal 2023 earnings per share (EPS) of 67 cents beat the Zacks Consensus Estimate of 66 cents by 1.5%. The bottom line also improved 6.3% from the prior-year period’s 63 cents.
Total Sales
The company’s net sales increased 26.6% year over year to $620.9 million in the reported quarter, primarily driven by improvement in commercial aerospace market. The total sales also beat the Zacks Consensus Estimate of $579 million by 7.7%.
Heico Corporation Price, Consensus and EPS Surprise
HEICO’s total costs and expenses increased 23.2% year over year to $491.5 million in the quarter under review. The increase was due to higher cost of sales and SG&A expenses.
Segmental Performance
Flight Support Group: Net sales surged 36.2% year over year to $371.3 million. This hike was driven by increased demand for the majority of its commercial aerospace products and services, resulting from continued recovery in global commercial air travel.
The operating income soared 60% year over year to $83.6 million. This increase was due to solid net sales growth, improved gross profit margin and efficiencies realized from higher net sales volume. Further, its operating margin expanded by a massive 330 basis points (bps) to 22.5% compared with 19.2% in the prior-year period.
Electronic Technologies Group: The segment’s net sales increased 15% to $255.1 million, primarily due to increased demand for other electronics, space and medical products.
The segment’s operating income improved 2% year over year to $56.5 million, primarily driven by higher net sales volume. The company’s operating margin contracted by 280 bps to 22.2%.
Financial Details
As of Jan 31, 2023, HEI’s cash and cash equivalents totaled $142.6 million compared with $139.5 million as of Oct 31, 2022.
Cash flow provided by operating activities was $76.7 million during the three months preceding Jan 31, 2023, indicating a 1.7% decline from the prior-year period.
HEICO reported long-term debt (net of current maturities) of $781.2 million as of Jan 31, 2023, up from $288.6 million as of Oct 31, 2022.
Lockheed Martin Corporation (LMT - Free Report) reported fourth-quarter 2022 adjusted earnings of $7.79 per share, which surpassed the Zacks Consensus Estimate of $7.41 by 5.1%. The bottom line also improved 7.9% year over year.
In the reported quarter, net sales amounted to $19 billion, which surpassed the Zacks Consensus Estimate of $18.25 billion by 4.1%. The top line rose 7.3% from the year-ago quarter’s reported figure of $17.7 billion.
Raytheon Technologies Corporation’s (RTX - Free Report) fourth-quarter 2022 adjusted earnings per share (EPS) of $1.27 beat the Zacks Consensus Estimate of $1.24 by 2.4%. Moreover, the bottom line improved 18% from the year-ago quarter’s reported figure.
Raytheon Technologies’ fourth-quarter sales of $18,093 million missed the Zacks Consensus Estimate of $18,196 million by 0.6%. The sales figure, however, rose 6% from $17,044 million in the year-ago quarter.
General Dynamics Corporation (GD - Free Report) reported fourth-quarter 2022 EPS of $3.58, which beat the Zacks Consensus Estimate of $3.53 by 1.4%. Quarterly earnings increased 5.6% from $3.39 per share in the year-ago quarter.
General Dynamics’ fourth-quarter revenues of $10,851 million beat the Zacks Consensus Estimate of $10,674 million by 1.7%. Revenues also improved 5.4% from the year-ago quarter.
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HEICO (HEI) Q1 Earnings Beat Estimates, Sales Increase Y/Y
Shares of HEICO Corporation (HEI - Free Report) slipped 0.1% to reach $174.56 on Mar 3, 2023, following its first-quarter fiscal 2023 results’ release.
The company’s first-quarter fiscal 2023 earnings per share (EPS) of 67 cents beat the Zacks Consensus Estimate of 66 cents by 1.5%. The bottom line also improved 6.3% from the prior-year period’s 63 cents.
Total Sales
The company’s net sales increased 26.6% year over year to $620.9 million in the reported quarter, primarily driven by improvement in commercial aerospace market. The total sales also beat the Zacks Consensus Estimate of $579 million by 7.7%.
Heico Corporation Price, Consensus and EPS Surprise
Heico Corporation price-consensus-eps-surprise-chart | Heico Corporation Quote
Operational Update
HEICO’s total costs and expenses increased 23.2% year over year to $491.5 million in the quarter under review. The increase was due to higher cost of sales and SG&A expenses.
Segmental Performance
Flight Support Group: Net sales surged 36.2% year over year to $371.3 million. This hike was driven by increased demand for the majority of its commercial aerospace products and services, resulting from continued recovery in global commercial air travel.
The operating income soared 60% year over year to $83.6 million. This increase was due to solid net sales growth, improved gross profit margin and efficiencies realized from higher net sales volume. Further, its operating margin expanded by a massive 330 basis points (bps) to 22.5% compared with 19.2% in the prior-year period.
Electronic Technologies Group: The segment’s net sales increased 15% to $255.1 million, primarily due to increased demand for other electronics, space and medical products.
The segment’s operating income improved 2% year over year to $56.5 million, primarily driven by higher net sales volume. The company’s operating margin contracted by 280 bps to 22.2%.
Financial Details
As of Jan 31, 2023, HEI’s cash and cash equivalents totaled $142.6 million compared with $139.5 million as of Oct 31, 2022.
Cash flow provided by operating activities was $76.7 million during the three months preceding Jan 31, 2023, indicating a 1.7% decline from the prior-year period.
HEICO reported long-term debt (net of current maturities) of $781.2 million as of Jan 31, 2023, up from $288.6 million as of Oct 31, 2022.
Zacks Rank
HEICO currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Lockheed Martin Corporation (LMT - Free Report) reported fourth-quarter 2022 adjusted earnings of $7.79 per share, which surpassed the Zacks Consensus Estimate of $7.41 by 5.1%. The bottom line also improved 7.9% year over year.
In the reported quarter, net sales amounted to $19 billion, which surpassed the Zacks Consensus Estimate of $18.25 billion by 4.1%. The top line rose 7.3% from the year-ago quarter’s reported figure of $17.7 billion.
Raytheon Technologies Corporation’s (RTX - Free Report) fourth-quarter 2022 adjusted earnings per share (EPS) of $1.27 beat the Zacks Consensus Estimate of $1.24 by 2.4%. Moreover, the bottom line improved 18% from the year-ago quarter’s reported figure.
Raytheon Technologies’ fourth-quarter sales of $18,093 million missed the Zacks Consensus Estimate of $18,196 million by 0.6%. The sales figure, however, rose 6% from $17,044 million in the year-ago quarter.
General Dynamics Corporation (GD - Free Report) reported fourth-quarter 2022 EPS of $3.58, which beat the Zacks Consensus Estimate of $3.53 by 1.4%. Quarterly earnings increased 5.6% from $3.39 per share in the year-ago quarter.
General Dynamics’ fourth-quarter revenues of $10,851 million beat the Zacks Consensus Estimate of $10,674 million by 1.7%. Revenues also improved 5.4% from the year-ago quarter.