NYSE$HEI

Heico Corporation · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

HEICO's Q2 2023 results were marked by record operating income and net sales, driven by growth in both Flight Support Group and Electronic Technologies Group.

HEICO Corporation reported a strong second quarter in fiscal 2023, with a 28% increase in net sales to a record $687.8 million and a 28% increase in operating income to a record $157.1 million. Net income also rose by 24% to $105.1 million, or $0.76 per diluted share. The Flight Support Group and Electronic Technologies Group both contributed to the record results.

  • Net sales increased 28% to a record $687.8 million.
  • Operating income increased 28% to a record $157.1 million.
  • Net income increased 24% to $105.1 million, or $0.76 per diluted share.
  • Flight Support Group achieved eleven consecutive quarters of sequential growth in net sales and operating income.

Headline financials

Total Revenue

$688M

Previous: $539M+27.7%
EPS (adj)

$0.76

Previous: $0.62+22.6%
Operating Margin

22.8%

Previous: 22.8%+0.0%
EBITDA

$187M

Previous: $147M+27.7%
Capital Expenditures

-$11.1M

Previous: -$7.52M-47.3%
Free Cash Flow

$143M

Previous: $167M-14.3%
Net Income

$105M

Previous: $85M+23.7%
Operating Income

$157M

Previous: $123M+27.9%
Gross Profit

$267M

Previous: $211M+26.2%
Cash & Equivalents

$127M

Previous: $117M+8.4%
Total Assets

$4.87B

Previous: $3.69B+32.2%

Revenue & EPS history

Heico · Revenue · Quarterly

$688M

Q2 2023+27.7%vs Q2 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Heico · $694M total across 2 segments · Q2 2023

  • Flight Support Group
    $392M+28.0%
  • Electronic Technologies Group
    $302M+27.1%

Forward guidance

HEICO anticipates net sales growth in both operating segments, driven by demand for the majority of their products. However, continued inflationary pressures and supply chain disruptions may lead to higher material and labor costs. The company plans to continue developing new products and services, further market penetration, and an aggressive acquisition strategy while maintaining financial strength and flexibility.

Tailwinds

  • Anticipates net sales growth in both operating segments.
  • Driven by demand for the majority of their products.
  • Commitments to developing new products and services.
  • Further market penetration.
  • Aggressive acquisition strategy while maintaining financial strength and flexibility.

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 Q2 2023

Historical avgQ2 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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