NYSE$HEI

Heico Corporation · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported improved operating income, net income and net sales compared to the third quarter of fiscal 2020.

HEICO Corporation reported a decrease in net income for the fourth quarter of fiscal 2020, from $85.7 million to $62.3 million. Operating income also decreased from $120.6 million to $89.1 million, and net sales decreased from $541.5 million to $426.2 million compared to Q4 2019. The results were impacted by the COVID-19 global pandemic.

  • Net income for Q4 2020 was $62.3 million, or 45 cents per diluted share, compared to $85.7 million, or 62 cents per diluted share, in Q4 2019.
  • Operating income for Q4 2020 was $89.1 million, compared to $120.6 million in Q4 2019.
  • Net sales for Q4 2020 were $426.2 million, compared to $541.5 million in Q4 2019.
  • The Company's consolidated operating margin was 20.9% in the fourth quarter of fiscal 2020, as compared to 22.3% in the fourth quarter of fiscal 2019.

Headline financials

Total Revenue

$426M

Previous: $542M-21.3%
EPS (adj)

$0.45

Previous: $0.62-27.4%
Operating Margin

20.9%

Previous: 22.3%-6.3%
EBITDA

$113M

Previous: $142M-20.8%
Cash from Operations

$110M

Previous: $124M-11.1%
Capital Expenditures

$5.47M

Previous: $7.27M-24.8%
Free Cash Flow

$105M

Previous: $117M-10.3%
Net Income

$62.3M

Previous: $85.7M-27.3%
Operating Income

$89.1M

Previous: $121M-26.1%
Gross Profit

$162M

Previous: $209M-22.8%
Cash & Equivalents

$407M

Previous: $57M+613.8%
Total Assets

$3.55B

Previous: $2.97B+19.5%

Revenue & EPS history

Heico · Revenue · Quarterly

$426M

Q4 2020-21.3%vs Q4 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Heico · $430M total across 2 segments · Q4 2020

  • Electronic Technologies Group
    $237M+7.8%
  • Flight Support Group
    $194M-40.4%

Forward guidance

HEICO will not provide fiscal 2021 guidance at this time due to the uncertainty of the Pandemic's impact on the commercial aerospace industry.

Tailwinds

  • Ongoing fiscal conservative policies
  • Healthy balance sheet
  • Increased liquidity
  • Invest in new research and development
  • Gain market share as the industry recovers

Headwinds

  • The Pandemic will likely continue to negatively impact the commercial aerospace industry and HEICO.
  • Lower commercial air travel caused by the COVID-19 Pandemic and its aftermath could cause lower demand for goods and services.
  • Product specification costs and requirements could cause an increase to costs to complete contracts.
  • Economic conditions within and outside of the aviation, defense, space, medical, telecommunications and electronics industries, could negatively impact costs and revenues.
  • Defense spending or budget cuts could reduce defense-related revenue.

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 Q4 2020

Historical avgQ4 2020

+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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