HEICO Earns 57 Cents per Share

HEICO (HEI) just reported fiscal Q2 earnings of 57 cents per share. There really isn’t a Wall Street consensus for HEICO since not many people follow it, but I had been expecting 55 cents per share. That’s up from 49 cents per share for last year’s Q2. Quarterly sales rose 20% to $350.6 million.

For the first half of the year, HEICO has earned $1.03 per share.

Laurans A. Mendelson, HEICO’s Chairman and CEO, commented on the Company’s second quarter results stating, “We are very pleased to report record quarterly results in consolidated net sales and net income driven by record net sales at both operating segments and record operating income at the Electronic Technologies Group. Our outstanding performance reflects profitable contributions to earnings from the fiscal 2015 and 2016 acquisitions, strong quarterly organic growth within the Electronic Technologies Group and continued increased demand within our Flight Support Group’s aftermarket replacement parts and specialty products lines.

The best news is that HEICO raised their full-year guidance:

Based on our current economic visibility, we are increasing our estimated consolidated fiscal 2016 year-over-year growth in net sales to 15% – 17% and net income to 12% – 14%, up from prior growth estimates in net sales of 14% – 16% and growth in net income of 10% – 13%. Additionally, we anticipate our consolidated full year operating margin to approximate 18.5% – 19.0%, depreciation and amortization expense of approximately $62 million, capital expenditures to approximate $32 million and cash flow from operations to approximate $220 million.

This is the second increase in guidance this year. HEICO doesn’t provide estimates for EPS but the company earned $1.97 per share last year. The new guidance probably works out to about $2.30 per share.

Posted by on May 25th, 2016 at 6:29 pm


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