NYSE$HEI

Heico Corporation · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported record net sales and a 24% increase in net income for the third quarter of fiscal 2023.

HEICO Corporation reported a 27% increase in net sales, reaching a record $722.9 million for the third quarter of fiscal 2023. Net income attributable to HEICO increased by 24% to $102.0 million, or $0.74 per diluted share. The company's operating income also saw a 16% increase, reaching $149.4 million.

  • Net sales increased by 27% to a record $722.9 million.
  • Operating income increased by 16% to $149.4 million.
  • Net income attributable to HEICO increased by 24% to $102.0 million, or $0.74 per diluted share.
  • EBITDA increased by 18% to $179.8 million.

Headline financials

Total Revenue

$723M

Previous: $570M+26.9%
EPS (adj)

$0.74

Previous: $0.60+23.3%
Operating Margin

20.7%

Previous: 22.6%-8.4%
EBITDA

$180M

Previous: $153M+17.7%
Cash from Operations

$146M

Previous: $149M-2.2%
Capital Expenditures

-$34.2M

Previous: -$8.15M-319.5%
Free Cash Flow

$266M

Previous: $316M-15.7%
Net Income

$102M

Previous: $82.5M+23.6%
Operating Income

$149M

Previous: $129M+16.0%
Gross Profit

$279M

Previous: $221M+26.2%
Cash & Equivalents

$694M

Previous: $134M+419.6%
Total Assets

$5.45B

Previous: $3.79B+44.0%

Revenue & EPS history

Heico · Revenue · Quarterly

$723M

Q3 2023+26.9%vs Q3 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Heico · $731M total across 2 segments · Q3 2023

  • Flight Support Group
    $405M+22.6%
  • Electronic Technologies Group
    $326M+33.4%

Forward guidance

HEICO anticipates net sales growth in both the FSG and ETG, driven by demand for the majority of their products. Continued inflationary pressures and lingering supply chain disruptions stemming from the COVID-19 pandemic may lead to higher material and labor costs.

Tailwinds

  • Anticipate net sales growth in both the FSG and ETG
  • Driven by demand for the majority of their products
  • Sharing of best practices with Wencor
  • Getting to know the Wencor businesses which share a similar entrepreneurial culture and customer focus as HEICO's businesses.
  • Remain committed to developing new products and services and further market penetration, while maintaining our financial strength and flexibility.

Headwinds

  • Continued inflationary pressures
  • Lingering supply chain disruptions stemming from the COVID-19 pandemic
  • May lead to higher material and labor costs
  • Product specification costs and requirements, which could cause an increase to our costs to complete contracts
  • Economic conditions, including the effects of inflation, within and outside of the aviation, defense, space, medical, telecommunications, and electronics industries, which could negatively impact our costs and revenues

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 Q3 2023

Historical avgQ3 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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