HEICO Earns 62 Cents per Share

HEICO (HEI) just reported fiscal Q3 earnings of 62 cents per share. That’s up 22% from last year’s Q3. For the year so far, earnings are 18% to $1.64 per share.

Sales for the quarter rose 19.1% to $356.1 million. That’s a company record. Sales for the year so far are up 18% to $1,013.0 million.

Laurans A. Mendelson, HEICO’s Chairman and CEO, commented on the Company’s third quarter results stating, “Our record quarterly results in consolidated net sales, operating income and net income reflect the impact of our profitable fiscal 2016 and 2015 acquisitions, as well as organic growth within both the Flight Support Group and Electronic Technologies Group.

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As we look ahead to the remainder of fiscal 2016, we anticipate organic growth within our commercial aviation aftermarket replacement parts and specialty products product lines moderated by softer demand for certain component repair and overhaul parts and services. Further, we foresee modest full year organic growth within the Electronic Technologies Group based on current forecasted product demand. During the remainder of fiscal 2016, we plan to continue our focus on new product development, further market penetration, executing our acquisition strategies and maintaining our financial strength.

Based on our current economic visibility, we are increasing our estimated consolidated fiscal 2016 year-over-year growth in net income to 13% – 15%, up from our prior growth estimate of 12% – 14%. In addition, we continue to estimate consolidated fiscal 2016 year-over-year growth in net sales to approximate 15% – 17%, our consolidated 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 third time this year that HEICO has increased its earnings guidance.

The company earned $1.97 per share last year, so an increase of 13% to 15% (bear in mind that they said “net income” not EPS) translates to earnings between $2.23 and $2.27 per share. HEICO’s diluted number of shares are up about 0.4% this year.

Posted by on August 24th, 2016 at 4:48 pm


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