Back to top

Image: Bigstock

Will Robust Segmental Sales Growth Boost Heico's Q3 Earnings

Read MoreHide Full Article

Key Takeaways

  • HEI is set to report Q3 earnings on Aug. 25, with the consensus mark for sales at $1.11B, up 12.2% YOY.
  • Flight Support revenues are estimated at $781M, reflecting 14.5% growth on higher aftermarket demand.
  • Electronic Technologies revenues are projected at $347M, implying 7.7% surge.

Heico Corp. ((HEI - Free Report) ) is scheduled to release third-quarter fiscal 2025 earnings on Aug. 25, 2025, after market close.

The company has a four-quarter average earnings surprise of 11.87%.

Robust sales growth expectations, along with increasing gross profit margin, are likely to have boosted HEI’s overall bottom line.

Flight Support Group Unit’s Revenues Likely to Rise

Higher sales volume from all product lines, especially impressive sales from aftermarket parts and distribution along with Wencor businesses, is likely to have boosted the Flight Support Group unit’s top line in the fiscal third quarter.

The Zacks Consensus Estimate for the Flight Support Group unit’s revenues is pegged at $780.6 million, which indicates an increase of 14.5% from the year-ago quarter’s figure.

Heico Corporation Price and EPS Surprise

Heico Corporation Price and EPS Surprise

Heico Corporation price-eps-surprise | Heico Corporation Quote

Electronic Technologies’ Revenues Likely to Increase

Higher sales volumes from space, electronics and aerospace products are likely to have boosted the Electronic Technologies unit’s revenue performance.

The Zacks Consensus Estimate for the Electronic Technologies unit’s revenues is pegged at $346.9 million, which indicates an increase of 7.7% from the year-ago quarter’s figure.

Q3 Estimates for HEI Stock

Sales growth anticipated across both of its major segments is likely to have boosted the company’s overall fiscal third-quarter revenue performance.

The Zacks Consensus Estimate for HEI’s third-quarter sales is pegged at $1.11 billion, which indicates an increase of 12.2% from the prior-year figure.

Robust sales growth expectations are projected to have boosted the company’s overall bottom line. Additionally, increasing gross profit margins from most of the product lines, except defense and medical products at its Electronic Technologies unit, are likely to have further added impetus to its earnings in the fiscal third quarter.

The Zacks Consensus Estimate for HEI’s fiscal third-quarter earnings is pegged at $1.12 per share, which indicates year-over-year growth of 15.5%.

What the Zacks Model Unveils for HEI

Our proven model does not conclusively predict an earnings beat for HEI this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below.

Earnings ESP: Heico has an Earnings ESP of -3.74%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: HEI currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Recent Defense Releases

RTX Corporation’s ((RTX - Free Report) ) second-quarter 2025 adjusted earnings per share (EPS) of $1.56 beat the Zacks Consensus Estimate of $1.45 by 7.6%. The bottom line also improved 10.6% from the year-ago quarter’s level of $1.41.

RTX’s second-quarter sales totaled $21.58 billion, which surpassed the Zacks Consensus Estimate of $20.53 billion by 5.1%. The top line also surged a solid 9.4% from $19.72 billion recorded for the second quarter of 2024.

Lockheed Martin Corporation ((LMT - Free Report) ) reported second-quarter 2025 adjusted earnings of $7.29 per share, which beat the Zacks Consensus Estimate of $6.49 by 12.3%. The bottom line increased 2.5% from the year-ago quarter's reported figure of $7.11.

Net sales were $18.16 billion, which missed the Zacks Consensus Estimate of $18.56 billion by 2.2%. The top line, however, inched up 0.2% from $18.12 billion reported in the year-ago quarter.

Northrop Grumman Corporation ((NOC - Free Report) ) reported second-quarter 2025 adjusted earnings of $7.11 per share, which beat the Zacks Consensus Estimate of $6.71 by 6%.

NOC’s total sales of $10.35 billion in the second quarter beat the consensus estimate of $10.06 billion by 2.9%. The top line also rose 1.3% from $10.22 billion reported in the year-ago quarter.

Published in