NYSE$HEI

Heico Corporation · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported record operating income and net sales for the fourth quarter and full fiscal year.

HEICO Corporation reported a record $936.4 million in net sales for Q4 2023, a 54% increase from Q4 2022. Operating income increased by 29% to a record $189.4 million. Net income attributable to HEICO increased by 6% to $103.4 million, or $.74 per diluted share.

  • Net sales increased 54% to a record $936.4 million.
  • Operating income increased 29% to a record $189.4 million.
  • Net income attributable to HEICO increased 6% to $103.4 million, or $.74 per diluted share.
  • EBITDA increased 36% to $234.2 million.

Headline financials

Total Revenue

$936M

Previous: $610M+53.6%
EPS (adj)

$0.74

Previous: $0.70+5.7%
Operating Margin

20.2%

Previous: 24.0%-15.8%
EBITDA

$234M

Previous: $172M+36.0%
Interest Expense

$43.4M

No prior period
Cash from Operations

$148M

Previous: $144M+3.1%
Capital Expenditures

-$15.3M

Previous: $7.63M-300.1%
Free Cash Flow

$133M

Previous: $136M-2.3%
Net Income

$103M

Previous: $97.2M+6.4%
Operating Income

$189M

Previous: $146M+29.3%
Gross Profit

$364M

Previous: $240M+51.6%
Cash & Equivalents

$171M

Previous: $140M+22.6%
Total Assets

$7.2B

Previous: $4.1B+75.7%

Revenue & EPS history

Heico · Revenue · Quarterly

$936M

Q4 2023+53.6%vs Q4 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Heico · $944M total across 2 segments · Q4 2023

  • Flight Support Group
    $602M+73.9%
  • Electronic Technologies Group
    $343M+27.6%

Forward guidance

HEICO anticipates net sales growth in both the Flight Support Group and Electronic Technologies Group, driven by acquisitions and product demand. Continued inflationary pressures may lead to higher material and labor costs. The company plans to integrate Wencor, develop new products, and maintain financial strength.

Tailwinds

  • Anticipate net sales growth in both the Flight Support Group and Electronic Technologies Group.
  • Growth principally driven by contributions from fiscal 2023 acquisitions.
  • Growth driven by demand for the majority of our products.
  • Actively work on Wencor's ongoing integration into our business and operations.
  • Continue commitment to developing new products and services and further market penetration.

Headwinds

  • Continued inflationary pressures may lead to higher material and labor costs.
  • Incurred acquisition costs related to the Wencor Group acquisition, which decreased net income attributable to HEICO by approximately $13.6 million.
  • Total debt to net income attributable to HEICO ratio was 6.14x as of October 31, 2023, as compared to .83x as of October 31, 2022.
  • Net debt to EBITDA ratio was 3.04x and .25x as of October 31, 2023 and October 31, 2022, respectively.
  • Increase in working capital principally driven by an increase in inventories to support our increased consolidated backlog.

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 2023

Historical avgQ4 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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