Heico Corporation (NYSE:HEI – Get Free Report) gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $351.05, but opened at $370.00. Heico shares last traded at $355.2850, with a volume of 164,143 shares traded.
The aerospace company reported $1.67 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.51 by $0.16. The business had revenue of $1.41 billion during the quarter, compared to analysts’ expectations of $1.35 billion. Heico had a return on equity of 17.52% and a net margin of 16.08%.The business’s revenue for the quarter was up 23.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.26 EPS.
Heico Dividend Announcement
The company also recently disclosed a dividend, which was paid on Wednesday, July 15th. Stockholders of record on Wednesday, July 1st were paid a $0.13 dividend. The ex-dividend date of this dividend was Wednesday, July 1st. This represents a dividend yield of 7.0%. Heico’s dividend payout ratio is currently 4.64%.
More Heico News
- Positive Sentiment: Quarterly earnings and revenue exceeded expectations. HEI reported adjusted EPS of $1.67, ahead of the $1.51 consensus estimate, while revenue reached $1.41 billion versus expectations of $1.35 billion. EPS increased from $1.26 a year earlier, and revenue rose 23.1% year over year. Heico Corporation Q3 Earnings and Revenues Beat Estimates
- Positive Sentiment: Record profitability underscored strong operating momentum. Third-quarter net income climbed 33% to a record $235.4 million, while operating income increased 34% and net sales rose 23%. Organic consolidated sales growth reached 14%, suggesting the performance was not driven solely by acquisitions. HEICO Reports Record Net Income, Operating Income and Net Sales
- Positive Sentiment: Aerospace and defense demand remained favorable. Coverage linked the results to increased demand across HEI’s aerospace and defense businesses, with acquisitions also contributing to revenue growth. The results support the company’s exposure to aftermarket aerospace activity and defense spending. Heico Beats Estimates on Aerospace and Defense Demand
- Neutral Sentiment: Valuation and growth expectations remain important risks. HEI trades near its 12-month high with a P/E ratio above 60, leaving less room for disappointing results. Investors may focus on whether aerospace demand, organic growth and acquisition benefits can sustain the company’s elevated valuation.
Analyst Upgrades and Downgrades
Several research firms recently commented on HEI. Royal Bank Of Canada lifted their target price on shares of Heico from $375.00 to $390.00 and gave the stock an “outperform” rating in a research report on Friday, May 29th. Rothschild & Co Redburn set a $360.00 price target on shares of Heico and gave the company a “buy” rating in a research report on Wednesday, May 13th. UBS Group reaffirmed a “neutral” rating and set a $390.00 price target (up from $371.00) on shares of Heico in a research note on Monday, June 1st. Truist Financial upgraded shares of Heico to a “strong-buy” rating in a report on Friday, May 1st. Finally, Wells Fargo & Company set a $350.00 price objective on Heico and gave the company an “equal weight” rating in a report on Monday, June 1st. Three analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, Heico presently has a consensus rating of “Moderate Buy” and an average target price of $379.56.
View Our Latest Analysis on HEI
Insiders Place Their Bets
In related news, CAO Bradley K. Rowen sold 1,326 shares of Heico stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $241.63, for a total transaction of $320,401.38. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 4.86% of the stock is owned by corporate insiders.
Institutional Inflows and Outflows
Several hedge funds have recently made changes to their positions in the business. IFC & Insurance Marketing Inc. acquired a new position in shares of Heico in the 4th quarter valued at about $26,000. CBIZ Investment Advisory Services LLC grew its stake in Heico by 1,000.0% during the fourth quarter. CBIZ Investment Advisory Services LLC now owns 88 shares of the aerospace company’s stock worth $28,000 after purchasing an additional 80 shares during the period. Birchwood Financial Partners Inc. acquired a new stake in Heico during the fourth quarter worth approximately $32,000. Miller Capital Partners Inc. acquired a new position in Heico in the fourth quarter valued at approximately $70,000. Finally, BNP Paribas bought a new position in shares of Heico during the 4th quarter worth approximately $79,000. 27.12% of the stock is owned by institutional investors.
Heico Price Performance
The stock has a market capitalization of $49.58 billion, a P/E ratio of 63.42, a PEG ratio of 3.56 and a beta of 1.04. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.36 and a current ratio of 2.92. The business has a fifty day simple moving average of $353.68 and a 200-day simple moving average of $321.20.
About Heico
HEICO Corporation is an aerospace, defense and electronics company that designs, manufactures, and sells a range of products and provides repair and aftermarket services. Headquartered in Hollywood, Florida, HEICO supplies replacement components, repair services and engineered systems for commercial and business aviation, military and space markets as well as for selected industrial and medical customers. The company’s offerings are focused on sustaining and improving the reliability and availability of complex equipment across its end markets.
HEICO operates through two principal business areas.
Read More
- Five stocks we like better than Heico
- Quantum Computing Is Raising the Stakes for Cybersecurity: 5 Stocks to Watch
- 5 Stocks to Buy in September Before Wall Street Catches On
- PDD Beat Earnings—So Why Did the Stock Still Fall?
- Tariffs Are Back in Focus: 3 Stocks With a Home-Field Advantage
Receive News & Ratings for Heico Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Heico and related companies with MarketBeat.com's FREE daily email newsletter.
