HEICO Corporation’s HEI first-quarter fiscal 2025 earnings per share (EPS) of $1.20 beat the Zacks Consensus Estimate of 93 cents by 29%. The bottom line also improved 46.3% from the prior-year quarter’s 82 cents.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
The year-over-year improvement in the bottom line can be attributed to robust sales and higher operating income from the prior-year quarter. The improvement was also boosted by a discrete income tax benefit from stock option exercises.
The company’s net sales increased 14.9% year over year to $1.03 billion. The figure also beat the Zacks Consensus Estimate of $0.97 billion by 6.1%.
The year-over-year upside was driven by increased demand across the Flight Support Group's product lines and for the defense, space and aerospace products of the Electronic Technologies Group.
Heico Corporation price-consensus-eps-surprise-chart | Heico Corporation Quote
HEICO’s cost of sales increased 13.6% year over year to $624.6 million.
The company’s selling, general and administrative (SG&A) expenses rose 7.4% to $178.9 million.
Interest expenses declined 15.9% to $32.5 million from $38.6 million in the prior-year quarter.
Flight Support Group: Net sales from this segment surged 15.3% year over year to $713.2 million. This rise was driven by strong organic growth of 13% and the positive impact of its fiscal 2023 and 2024 acquisitions.
The segment’s operating income soared 22.1% year over year to $166.1 million. This increase was due to solid net sales growth, SG&A expense efficiencies realized from the net sales growth and an improved gross profit margin.
Electronic Technologies Group: The segment’s net sales increased 15.5% to $330.3 million. This rise was driven by strong organic growth of 11% and the positive impact of its fiscal 2023 and 2024 acquisitions.
The segment’s operating income increased 38.2% year over year to $76.5 million. This increase was due to solid net sales growth, SG&A expense efficiencies realized from the net sales growth and an improved gross profit margin.
As of Jan. 31, 2025, HEI’s cash and cash equivalents totaled $165.5 million compared with $162.1 million as of Oct. 31, 2024.
Cash flow provided by operating activities was $203 million during the first quarter of fiscal 2025, reflecting an 81.8% rise from the prior-year period’s level.
HEICO reported a long-term debt (net of current maturities) of $2.35 billion as of Jan. 31, 2025, up from $2.23 billion as of Oct. 31, 2024.
HEICO currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Teledyne Technologies Inc. TDY reported fourth-quarter 2024 adjusted earnings of $5.52 per share, which surpassed the Zacks Consensus Estimate of $5.23 by 5.5%. Total sales were $1.50 billion, which beat the consensus estimate of $1.45 billion by 3.7%.
Textron Inc. TXT reported fourth-quarter 2024 adjusted earnings of $1.34 per share, which beat the Zacks Consensus Estimate of $1.25 by 7.2%. The company reported total revenues of $3.61 billion, which missed the consensus estimate of $3.74 billion by 3.5%.
Hexcel Corporation HXL reported fourth-quarter 2024 adjusted earnings of 52 cents per share, which surpassed the Zacks Consensus Estimate of 51 cents by 2%. The company’s net sales totaled $473.8 million, which beat the consensus estimate of $471 million by 0.6%.
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
Textron Inc. (TXT) : Free Stock Analysis Report
Hexcel Corporation (HXL) : Free Stock Analysis Report
Teledyne Technologies Incorporated (TDY) : Free Stock Analysis Report
Heico Corporation (HEI) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.