NYSE$HEI

Heico Corporation · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported strong operating cash flows, up 32%, with second consecutive quarter of sequential improvement in net sales and operating income at Flight Support Group.

HEICO Corporation reported a net income of $70.6 million, or $.51 per diluted share, for the first quarter of fiscal 2021. The results were impacted by the COVID-19 pandemic. Despite the challenges, the company's cash flow from operations increased by 32% to $107.2 million.

  • Net income for the first quarter of fiscal 2021 was $70.6 million, or $.51 per diluted share, compared to $121.9 million, or $.89 per diluted share, in the first quarter of fiscal 2020.
  • Cash flow provided by operating activities increased 32% to $107.2 million in the first quarter of fiscal 2021, up from $81.1 million in the first quarter of fiscal 2020.
  • The Flight Support Group experienced sequential growth in operating income and net sales, improving 20% and 3%, respectively, compared to the fourth quarter of fiscal 2020.
  • Net sales of space and other electronics products within the Electronic Technologies Group grew organically by 19% and 14%, respectively.

Headline financials

Total Revenue

$418M

Previous: $506M-17.5%
EPS (adj)

$0.51

Previous: $0.55-7.3%
Operating Margin

19.2%

Previous: 21.9%-12.3%
EBITDA

$104M

Previous: $133M-21.7%
Cash from Operations

$107M

Previous: $81.1M+32.2%
Capital Expenditures

-$15.5M

Previous: -$6.85M-126.4%
Free Cash Flow

$91.7M

Previous: $74.3M+23.4%
Net Income

$70.6M

Previous: $122M-42.1%
Operating Income

$80.3M

Previous: $111M-27.7%
Gross Profit

$158M

Previous: $198M-20.0%
Cash & Equivalents

$399M

Previous: $64M+524.4%
Total Assets

$3.57B

Previous: $3.1B+15.1%

Revenue & EPS history

Heico · Revenue · Quarterly

$418M

Q1 2021-17.5%vs Q1 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Heico · $423M total across 2 segments · Q1 2021

  • Electronic Technologies Group
    $224M+7.3%
  • Flight Support Group
    $199M-33.8%

Forward guidance

HEICO cannot provide fiscal 2021 net sales and earnings guidance due to the uncertainty caused by the Pandemic. However, they anticipate that their financial policies, balance sheet, and liquidity will allow them to invest in research and development and gain market share as the industry recovers. They are cautiously optimistic that vaccine progress may increase commercial air travel and result in a gradual recovery in demand for their commercial aerospace parts and services commencing primarily in the second-half of fiscal 2021.

Tailwinds

  • Ongoing fiscal conservative policies.
  • Healthy balance sheet.
  • Increased liquidity.
  • Ability to invest in new research and development.
  • Opportunity to gain market share as the industry recovers.

Headwinds

  • The Pandemic will likely continue to negatively impact the commercial aerospace industry and HEICO.
  • Uncertainty prevents providing fiscal 2021 net sales and earnings guidance.
  • Continued suppressed demand in global commercial air travel.
  • Commercial aerospace businesses decreased by approximately 43% in the first quarter of fiscal 2021, as compared to the first quarter of fiscal 2020.
  • The Pandemic has most notably continued to moderate demand for our commercial aerospace products and services in the first quarter of fiscal 2021.

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 2021

Historical avgQ1 2021

+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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