NYSE$HEI

Heico Corporation · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

HEICO reported a record net income with increases in net sales and operating income.

HEICO Corporation reported a strong first quarter with a 54% increase in net income, a 13% increase in operating income, and a 9% increase in net sales. The company's Flight Support Group and Electronic Technologies Group both contributed to the positive results.

  • Net income increased 54% to a record $121.9 million, or 89 cents per diluted share.
  • Operating income increased 13% to $111.0 million.
  • Net sales increased 9% to $506.3 million.
  • EBITDA increased 13% to $132.8 million.

Headline financials

Total Revenue

$506M

Previous: $466M+8.6%
EPS (adj)

$0.55

Previous: $0.49+12.2%
Operating Margin

21.9%

Previous: 21.0%+4.3%
EBITDA

$133M

Previous: $118M+12.8%
Interest Expense

$4.28M

No prior period
Cash from Operations

$81.1M

Previous: $49.6M+63.5%
Capital Expenditures

-$6.85M

Previous: -$5.91M-16.0%
Free Cash Flow

$74.3M

Previous: $43.7M+70.2%
Net Income

$122M

Previous: $79.3M+53.6%
Operating Income

$111M

Previous: $97.9M+13.3%
Gross Profit

$198M

Previous: $182M+8.7%
Cash & Equivalents

$64M

Previous: $57.9M+10.6%
Total Assets

$3.1B

Previous: $2.8B+10.7%

Revenue & EPS history

Heico · Revenue · Quarterly

$506M

Q1 2020+8.6%vs Q1 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Heico · $510M total across 2 segments · Q1 2020

  • Flight Support Group
    $301M+4.8%
  • Electronic Technologies Group
    $208M+13.0%

Forward guidance

HEICO anticipates continued net sales growth and is raising its full year net income growth estimate.

Tailwinds

  • Continued net sales growth within the Flight Support Group's commercial aviation and defense product lines.
  • Growth within the Electronic Technologies Group, principally driven by demand for the majority of products.
  • Commitments to developing new products and services.
  • Further market penetration.
  • Aggressive acquisition strategy.

Headwinds

  • Potential impact from the recent coronavirus outbreak as the impact to our businesses is uncertain and difficult to predict.
  • Lower demand for commercial air travel or airline fleet changes or airline purchasing decisions.
  • Product specification costs and requirements.
  • Governmental and regulatory demands, export policies and restrictions, reductions in defense, space or homeland security spending by U.S. and/or foreign customers or competition from existing and new competitors.
  • Economic conditions within and outside of the aviation, defense, space, medical, telecommunications and electronics industries.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.9%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+1.0%

Avg return

30 days after

54%

37 / 68 earnings

Positive

+13.9%

Q1 2025

Best reaction

-13.2%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026
Q1 2026-9.2%-5.2%-20.7%
Q4 2025+5.8%+9.5%+14.2%
Q3 2025+8.7%+2.2%+4.1%
Q2 2025+7.5%+9.8%+18.9%
Q1 2025+13.9%+16.7%+17.0%
Q4 2024-9.7%-9.1%-10.4%
Q3 2024+0.3%+4.0%+6.5%
Q2 2024-2.0%+2.1%+4.4%
Q1 2024-2.8%-2.7%-2.4%
Q4 2023+1.1%-1.1%-5.3%
Q3 2023-0.5%+1.8%-3.7%
Q2 2023-6.9%-10.0%-2.7%
Q1 2023-5.3%-0.2%-3.0%
Q4 2022+1.0%+1.5%+7.1%
Q3 2022-2.0%-2.4%-7.1%
Q2 2022+2.1%+9.0%-1.6%
Q1 2022+0.1%+4.6%+9.6%
Q4 2021-2.1%-2.5%+9.5%
Q3 2021+0.1%-0.6%+3.1%
Q2 2021+0.3%+4.0%+6.1%
Q1 2021+2.7%-2.9%-5.5%
Q4 2020-3.0%-1.4%+2.7%
Q3 2020-4.1%-0.1%-8.3%
Q2 2020+11.9%+7.2%+5.5%
Q1 2020-13.2%-9.4%-26.8%
Q4 2019-4.4%-7.5%-3.7%
Q3 2019-0.4%+0.3%-11.7%
Q2 2019+12.5%+16.8%+26.4%
Q1 2019-1.4%-0.5%+0.1%
Q4 2018-0.8%-9.2%-2.6%
Q3 2018+11.6%+12.8%+13.4%
Q2 2018+2.6%+2.2%+0.5%
Q1 2018+4.6%+5.5%+6.1%
Q4 2017+1.1%-2.5%+0.8%
Q3 2017+1.6%+1.5%+10.2%
Q2 2017-2.8%+0.2%-3.5%
Q1 2017+3.9%+3.8%+5.3%
Q4 2016-4.8%-3.4%-2.7%
Q3 2016-2.3%-5.8%-5.9%
Q2 2016+1.5%+1.1%-2.5%
Q1 2016+5.9%
Q4 2015+3.2%
Q3 2015-2.2%
Q2 2015+7.4%
Q1 2015-6.0%
Q4 2014+4.7%
Q3 2014-2.3%
Q2 2014-5.9%
Q1 2014+8.1%
Q4 2013+2.8%
Q3 2013+1.0%
Q2 2013+6.2%
Q1 2013-4.5%
Q4 2012+5.3%
Q3 2012+6.4%
Q2 2012+10.9%
Q1 2012-4.4%
Q2 2011-0.5%
Q4 2011-0.5%
Q3 2011-6.4%
Q1 2011+6.4%
Q1 2010+6.4%
Q4 2008-1.2%
Q2 2010-1.2%
Q4 2010-1.2%
Q3 2009+2.8%
Q3 2010+2.8%
Q4 2009+2.8%

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