NYSE$HEI

Heico Corporation · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported strong operating cash flow and sequential improvements in net sales and operating income at Flight Support Group, along with record quarterly net sales at Electronic Technologies Group.

HEICO Corporation reported net income of $70.7 million, or $.51 per diluted share, in the second quarter of fiscal 2021. The company's consolidated operating margin was 20.7% in the second quarter of fiscal 2021. Net sales were $466.7 million in the second quarter of fiscal 2021. EBITDA was $120.0 million in the second quarter of fiscal 2021.

  • Record quarterly net sales in the Electronic Technologies Group were achieved.
  • Third consecutive quarter of sequential growth in net sales and operating income within the Flight Support Group was reported.
  • Total debt to shareholders' equity ratio improved to 27.1% as of April 30, 2021.
  • Cash flow provided by operating activities was $102.9 million in the second quarter of fiscal 2021.

Headline financials

Total Revenue

$467M

Previous: $468M-0.3%
EPS (adj)

$0.51

Previous: $0.55-7.3%
Operating Margin

20.7%

Previous: 23.1%-10.4%
EBITDA

$120M

Previous: $130M-7.7%
Capital Expenditures

-$6.43M

Previous: -$5.59M-15.1%
Free Cash Flow

$204M

Previous: $200M+1.7%
Net Income

$70.7M

Previous: $75.5M-6.3%
Operating Income

$96.7M

Previous: $108M-10.6%
Gross Profit

$180M

Previous: $179M+0.5%
Cash & Equivalents

$385M

Previous: $347M+11.1%
Total Assets

$3.6B

Previous: $3.36B+6.8%

Revenue & EPS history

Heico · Revenue · Quarterly

$467M

Q2 2021-0.3%vs Q2 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Heico · $473M total across 2 segments · Q2 2021

  • Electronic Technologies Group
    $243M+11.0%
  • Flight Support Group
    $230M-8.6%

Forward guidance

Given these uncertainties, we cannot provide fiscal 2021 net sales and earnings guidance at this time. However, we believe our ongoing fiscal conservative policies, strong balance sheet, and high degree of liquidity enable us to invest in new research and development, execute on our successful acquisition program, and position HEICO for market share gains as the industry recovers.

Tailwinds

  • Ongoing worldwide rollout of COVID-19 vaccines will have a positive influence on commercial air travel
  • Generate favorable economic environments in the markets we serve
  • Ongoing fiscal conservative policies
  • Strong balance sheet
  • High degree of liquidity

Headwinds

  • Pace of recovery in global travel remains difficult to predict
  • New COVID-19 variants can negatively influence recovery
  • Varying vaccine adoption rates can negatively influence recovery
  • COVID-19 global pandemic moderated demand for our commercial aerospace parts and services in the second quarter of fiscal 2021 compared to the prior year.
  • Cannot provide fiscal 2021 net sales and earnings guidance at this time.

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 Q2 2021

Historical avgQ2 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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