NYSE$HEI

Heico Corporation · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported record net sales and strong operating income, driven by Flight Support Group and acquisitions.

HEICO Corporation reported a 27% increase in net sales, reaching a record $620.9 million for the first quarter of fiscal 2023. Operating income also saw a significant rise of 31%, amounting to $129.4 million. The company's consolidated operating margin improved to 20.8%.

  • Net sales increased by 27% to a record $620.9 million.
  • Operating income increased by 31% to $129.4 million.
  • Consolidated operating margin improved to 20.8%.
  • EBITDA increased 29% to $157.1 million.

Headline financials

Total Revenue

$621M

Previous: $490M+26.6%
EPS (adj)

$0.70

Previous: $0.63+11.1%
Operating Margin

20.8%

Previous: 20.2%+3.0%
EBITDA

$157M

Previous: $122M+28.5%
Cash from Operations

$76.7M

No prior period
Capital Expenditures

-$10.8M

Previous: -$8.69M-24.8%
Free Cash Flow

$65.8M

Previous: $69.3M-5.0%
Net Income

$93M

Previous: $86.9M+7.0%
Operating Income

$129M

Previous: $98.8M+31.0%
Gross Profit

$244M

Previous: $190M+28.2%
Cash & Equivalents

$143M

Previous: $125M+14.3%
Total Assets

$4.8B

Previous: $3.51B+36.7%

Revenue & EPS history

Heico · Revenue · Quarterly

$621M

Q1 2023+26.6%vs Q1 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Heico · $626M total across 2 segments · Q1 2023

  • Flight Support Group
    $371M+36.2%
  • Electronic Technologies Group
    $255M+14.7%

Forward guidance

The company anticipates net sales growth in both operating segments, driven by demand for most products. Continued inflationary pressures and supply chain disruptions may lead to higher material and labor costs. HEICO plans to continue developing new products and services, further market penetration, and an aggressive acquisition strategy.

Tailwinds

  • Anticipate net sales growth in both operating segments.
  • Driven by demand for the majority of products.
  • Continue commitments to developing new products and services.
  • Further market penetration.
  • Aggressive acquisition strategy.

Headwinds

  • Continued inflationary pressures.
  • Lingering supply chain disruptions stemming from the COVID-19 pandemic.
  • May lead to higher material costs.
  • May lead to higher labor costs.
  • Defense products net sales decreased.

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 2023

Historical avgQ1 2023

+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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