HEICO Earns 65 Cents per Share for Q4

HEICO (HEI) just reported fiscal Q4 earnings of 65 cents per share. That’s up from 56 cents per share for last year’s Q4. Wall Street had been expecting 62 cents per share. This was a very good quarter and fiscal year.

For the year, HEICO earned $2.29 per share. In their Q3 report, HEICO said they forecast net income to rise by 13% to 15%. Since they made $1.97 per share last year, that works out to a range of $2.23 to $2.27 per share. As it turns out, their net income increased 17% this year to a record $156.2 million, or $2.29 per share.

For the year, net sales rose 16% to $1.3763 billion. Impressively, their operating margin was 19.3% both this year and last year.

Laurans A. Mendelson, HEICO’s Chairman and CEO, commented on the Company’s full fiscal year and fourth quarter results stating, “Our record full year and fourth quarter of fiscal 2016 results in consolidated net sales, operating income and net income reflect the impact of our profitable fiscal 2016 and 2015 acquisitions, as well as continued increased demand for the majority of HEICO’s products.

Cash flow provided by operating activities was very strong, increasing 44% to a record $249.2 million in the fiscal year ended October 31, 2016, representing 160% of net income, as compared to $172.9 million in the fiscal year ended October 31, 2015.

Our net debt to shareholders’ equity ratio was 39.6% as of October 31, 2016, with net debt (total debt less cash and cash equivalents) of $415.3 million principally incurred to fund acquisitions in fiscal 2016 and 2015. We have no significant debt maturities until fiscal 2019 and plan to utilize our financial flexibility to aggressively pursue high quality acquisition opportunities to accelerate growth and maximize shareholder returns.

As I mentioned earlier, HEICO announced a 13% dividend increase. The company also said they’re looking forward to a stock split next year.

Considering the impact of cash dividends, prior stock splits and stock dividends, one share of HEI worth $8.38 in 1990 has become worth on a combined basis approximately $1,417, representing an increase of approximately 169 times the 1990 value and a compound annual growth rate of approximately 22%.

Not bad.

For 2017, HEICO sees net sales growth of 5% to 7%, and net income growth of 7% to 10%. That works out to an EPS range of $2.45 to $2.52. Wall Street had been expecting $2.53 per share.

Posted by on December 13th, 2016 at 4:32 pm


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