Latest news with #HEICO
Yahoo
3 hours ago
- Business
- Yahoo
Reasons to Add HEICO Stock to Your Investment Portfolio Now
HEICO Corporation HEI benefits from its aviation aftermarket services and precise acquisition strategy, which has played an essential part in the company's overall growth. Given its strong growth and debt management, HEI makes for a solid investment option in the Zacks Aerospace Defense Equipment focus on the reasons that make this Zacks Rank #2 (Buy) stock an attractive investment pick at the moment. The Zacks Consensus Estimate for HEI's fiscal 2025 earnings per share (EPS) has increased 1.4% to $4.48 per share over the past 30 Zacks Consensus Estimate for its fiscal 2025 revenues is pegged at $4.34 billion, which implies a rise of 12.5% from the fiscal 2024 reported sales company's long-term (three to five years) earnings growth rate is 17.4%. HEI surpassed expectations in the last four reported quarters and delivered an average earnings surprise of 11.87%. HEICO's return on invested capital (ROIC) has outperformed the industry average in the trailing 12 months. Currently, HEI's ROIC is 9.95% compared with the industry average of 4.43%. The ROIC evaluates a company's ability to earn returns on its investments. Return on equity (ROE) indicates how efficiently a company has been utilizing its shareholders' funds to generate returns. Currently, HEICO's ROE is 15.88% compared to its industry's average of 11.08%. This indicates that the company has been utilizing its funds more constructively than its peers in the industry. HEI's current ratio at the end of the second quarter of fiscal 2025 was 3.43, higher than the industry's average of 1.74. A current ratio greater than one indicates that the company has enough short-term assets to liquidate to cover all short-term liabilities, if necessary. Currently, HEICO's total debt to capital is 36.08%, much better than the industry's average of 52.25%.HEI's times interest earned ratio at the end of the second quarter of fiscal 2025 was 6.6. The ratio, being greater than one, reflects the company's ability to meet future interest obligations without difficulties. In April 2025, Heico bought Rosen Aviation's entire ownership stake. Rosen designs and manufactures in-flight entertainment (IFE) products, principally in-cabin displays and control panels. In February 2025, the company announced that its Flight Support Group had purchased a 90% share in Millennium International, LLC, a supplier of business jet avionics repair solutions that specializes in mission-critical repairs and maintenance for both next-generation and legacy avionics acquisitions strengthen HEICO's position in high-value cockpit avionics, increasing its market footprint, product offerings and aviation aftermarket services. In the past six months, HEI shares have rallied 13.8% against the industry's decline of 4.9%. Image Source: Zacks Investment Research A few other top-ranked stocks from the same industry are Leonardo DRS, Inc. DRS, Curtiss-Wright Corp. CW and Woodward, Inc. WWD, each carrying a Zacks Rank #2 at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks long-term earnings growth rate is 14.6%. The Zacks Consensus Estimate for 2025 EPS is pegged at $1.08, which suggests a year-over-year rise of 16.1%.CW's long-term earnings growth rate is 12%. The Zacks Consensus Estimate for 2025 EPS is pegged at $12.61, which implies an improvement of 15.7%.Woodward's long-term earnings growth rate is 13%. The Zacks Consensus Estimate for fiscal 2025 EPS is pegged at $6.22, which indicates year-over-year growth of 1.8%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Curtiss-Wright Corporation (CW) : Free Stock Analysis Report Woodward, Inc. (WWD) : Free Stock Analysis Report Heico Corporation (HEI) : Free Stock Analysis Report Leonardo DRS, Inc. (DRS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Business Insider
3 days ago
- Business
- Business Insider
Barclays Remains a Hold on HEICO (HEI)
Barclays analyst David E. Strauss maintained a Hold rating on HEICO (HEI – Research Report) on May 30 and set a price target of $280.00. Confident Investing Starts Here: E. Strauss covers the Industrials sector, focusing on stocks such as Boeing, L3Harris Technologies, and ATI. According to TipRanks, E. Strauss has an average return of 9.9% and a 62.93% success rate on recommended stocks. In addition to Barclays, HEICO also received a Hold from Wells Fargo's Matthew Akers in a report issued on May 30. However, on May 29, Jefferies maintained a Buy rating on HEICO (NYSE: HEI). Based on HEICO's latest earnings release for the quarter ending January 31, the company reported a quarterly revenue of $1.03 billion and a net profit of $167.96 million. In comparison, last year the company earned a revenue of $896.36 million and had a net profit of $114.7 million Based on the recent corporate insider activity of 38 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of HEI in relation to earlier this year. Most recently, in April 2025, Julie Neitzel, a Director at HEI sold 700.00 shares for a total of $172,361.00.
Yahoo
6 days ago
- Business
- Yahoo
Aerospace Stocks Q1 In Review: Textron (NYSE:TXT) Vs Peers
Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let's have a look at Textron (NYSE:TXT) and its peers. Aerospace companies often possess technical expertise and have made significant capital investments to produce complex products. It is an industry where innovation is important, and lately, emissions and automation are in focus, so companies that boast advances in these areas can take market share. On the other hand, demand for aerospace products can ebb and flow with economic cycles and geopolitical tensions, which can be particularly painful for companies with high fixed costs. The 15 aerospace stocks we track reported a strong Q1. As a group, revenues missed analysts' consensus estimates by 1.4% while next quarter's revenue guidance was in line. Luckily, aerospace stocks have performed well with share prices up 13.4% on average since the latest earnings results. Listed on the NYSE in 1947, Textron (NYSE:TXT) provides products and services in the aerospace, defense, industrial, and finance sectors. Textron reported revenues of $3.31 billion, up 5.5% year on year. This print exceeded analysts' expectations by 2.3%. Overall, it was a very strong quarter for the company with a solid beat of analysts' EBITDA estimates and an impressive beat of analysts' organic revenue estimates. "In the quarter, we saw strong growth in both military and commercial product lines at Bell," said Textron Chairman and CEO Scott C. Donnelly. The stock is up 11.9% since reporting and currently trades at $74. Is now the time to buy Textron? Access our full analysis of the earnings results here, it's free. Founded in 1957, HEICO (NYSE:HEI) manufactures and services aerospace and electronic components for commercial aviation, defense, space, and other industries. HEICO reported revenues of $1.10 billion, up 14.9% year on year, outperforming analysts' expectations by 3.5%. The business had a stunning quarter with a solid beat of analysts' EPS estimates and an impressive beat of analysts' EBITDA estimates. The market seems happy with the results as the stock is up 8.6% since reporting. It currently trades at $298.08. Is now the time to buy HEICO? Access our full analysis of the earnings results here, it's free. Providing a one-stop shop that integrates multiple services and product offerings, AerSale (NASDAQ:ASLE) delivers full-service support to mid-life commercial aircraft. AerSale reported revenues of $65.78 million, down 27.4% year on year, falling short of analysts' expectations by 26.3%. It was a disappointing quarter as it posted a significant miss of analysts' adjusted operating income estimates. AerSale delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 17.6% since the results and currently trades at $5.79. Read our full analysis of AerSale's results here. Becoming the first private company in the Southern Hemisphere to reach space, Rocket Lab (NASDAQ:RKLB) offers rockets designed for launching small satellites. Rocket Lab reported revenues of $122.6 million, up 32.1% year on year. This print beat analysts' expectations by 0.8%. It was an exceptional quarter as it also recorded EBITDA guidance for next quarter exceeding analysts' expectations. Rocket Lab delivered the fastest revenue growth among its peers. The stock is up 17% since reporting and currently trades at $27.06. Read our full, actionable report on Rocket Lab here, it's free. Supplying parts for nearly all aircraft currently in service, TransDigm (NYSE:TDG) develops and manufactures components and systems for military and commercial aviation. TransDigm reported revenues of $2.15 billion, up 12% year on year. This number came in 0.7% below analysts' expectations. Taking a step back, it was a mixed quarter as it also logged an impressive beat of analysts' adjusted operating income estimates but a slight miss of analysts' organic revenue estimates. The stock is flat since reporting and currently trades at $1,461. Read our full, actionable report on TransDigm here, it's free. The Fed's interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump's presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Yahoo
28-05-2025
- Business
- Yahoo
Why HEICO (HEI) Stock Is Trading Up Today
Shares of aerospace and defense company HEICO (NSYE:HEI) jumped 6.5% in the morning session after the company reported impressive first quarter 2025 financial results, which beat analysts' revenue and EBITDA expectations. Sales rose 15% thanks to higher orders for flight parts and aerospace electronics, especially in the company's Flight Support and Electronic Technologies groups. Zooming out, we think this was a solid print. Is now the time to buy HEICO? Access our full analysis report here, it's free. HEICO's shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 5 months ago when the stock dropped 9.8% on the news that the company reported weak third-quarter 2024 earnings. Its revenue missed, and its adjusted operating income fell short of Wall Street's estimates. Also, the company's debt profile continued to leave little room for error, given the negative net cash position, with management highlighting a total debt-to-net income ratio of 4.34x. In addition, the top-line growth continued to decelerate, with revenue up 8.2% year on year during the quarter, a sharp drop from the double-digit growth recorded in the previous quarters, presenting more reasons for investors to be worried. Overall, this was a weaker quarter. HEICO is up 23.3% since the beginning of the year, and at $292.55 per share, has set a new 52-week high. Investors who bought $1,000 worth of HEICO's shares 5 years ago would now be looking at an investment worth $2,815. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
HEICO (NYSE:HEI) Delivers Impressive Q1
Aerospace and defense company HEICO (NSYE:HEI) announced better-than-expected revenue in Q1 CY2025, with sales up 14.9% year on year to $1.10 billion. Its GAAP profit of $1.12 per share was 8.1% above analysts' consensus estimates. Is now the time to buy HEICO? Find out in our full research report. Revenue: $1.10 billion vs analyst estimates of $1.06 billion (14.9% year-on-year growth, 3.5% beat) EPS (GAAP): $1.12 vs analyst estimates of $1.04 (8.1% beat) Adjusted EBITDA: $297.7 million vs analyst estimates of $281.1 million (27.1% margin, 5.9% beat) Operating Margin: 22.6%, in line with the same quarter last year Free Cash Flow Margin: 17.2%, up from 13.4% in the same quarter last year Market Capitalization: $32.5 billion Laurans A. Mendelson, HEICO's Executive Chairman, along with Co-Chief Executive Officers Eric A. Mendelson and Victor H. Mendelson, commented on the Company's second quarter results stating, "We are very pleased to report record quarterly operating income and net sales, driven primarily by double-digit consolidated organic net sales growth. This performance mainly reflects strong organic net sales growth across all product lines of the Flight Support Group and double-digit organic net sales growth for the Electronic Technologies Group's space and aerospace products. Founded in 1957, HEICO (NYSE:HEI) manufactures and services aerospace and electronic components for commercial aviation, defense, space, and other industries. Examining a company's long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Thankfully, HEICO's 15.1% annualized revenue growth over the last five years was incredible. Its growth surpassed the average industrials company and shows its offerings resonate with customers, a great starting point for our analysis. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. HEICO's annualized revenue growth of 28.9% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. This quarter, HEICO reported year-on-year revenue growth of 14.9%, and its $1.10 billion of revenue exceeded Wall Street's estimates by 3.5%. Looking ahead, sell-side analysts expect revenue to grow 8.6% over the next 12 months, a deceleration versus the last two years. Despite the slowdown, this projection is above average for the sector and indicates the market sees some success for its newer products and services. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products, and most importantly, keeping them relevant through research and development. HEICO has been a well-oiled machine over the last five years. It demonstrated elite profitability for an industrials business, boasting an average operating margin of 21.5%. Analyzing the trend in its profitability, HEICO's operating margin rose by 2.3 percentage points over the last five years, as its sales growth gave it operating leverage. This quarter, HEICO generated an operating profit margin of 22.6%, in line with the same quarter last year. This indicates the company's overall cost structure has been relatively stable. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. HEICO's EPS grew at a solid 10.1% compounded annual growth rate over the last five years. Despite its operating margin expansion during that time, this performance was lower than its 15.1% annualized revenue growth, telling us that non-fundamental factors such as interest and taxes affected its ultimate earnings. Diving into HEICO's quality of earnings can give us a better understanding of its performance. A five-year view shows HEICO has diluted its shareholders, growing its share count by 2.5%. This dilution overshadowed its increased operating efficiency and has led to lower per share earnings. Taxes and interest expenses can also affect EPS but don't tell us as much about a company's fundamentals. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For HEICO, its two-year annual EPS growth of 25.2% was higher than its five-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base. In Q1, HEICO reported EPS at $1.12, up from $0.88 in the same quarter last year. This print beat analysts' estimates by 8.1%. Over the next 12 months, Wall Street expects HEICO's full-year EPS of $4.28 to grow 8.4%. We enjoyed seeing HEICO beat analysts' revenue expectations. We were also glad its EBITDA outperformed Wall Street's estimates. Management attributed the strong quarter to "strong organic net sales growth across all product lines of the Flight Support Group and double-digit organic net sales growth for the Electronic Technologies Group's space and aerospace products". The stock remained flat at $277 immediately following the results. HEICO put up rock-solid earnings, but one quarter doesn't necessarily make the stock a buy. Let's see if this is a good investment. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. 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