Heico (HEI) Down 12.9% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for Heico Corporation (HEI). Shares have lost about 12.9% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Heico due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.HEICO Q1 Earnings Surpass Estimates, Sales Increase Y/YThe company reported first-quarter fiscal 2026 earnings per share (EPS) of $1.35, which beat the Zacks Consensus Estimate of $1.26 by 7.1%. The bottom line also improved 12.5% from the prior-year quarter’s $1.20.The year-over-year increase in the bottom line can be attributed to robust sales growth, higher operating income and lower interest expense compared with the prior-year quarter.HEI’s Total SalesThe company’s net sales increased 14.4% year over year to $1.18 billion. The figure also beat the Zacks Consensus Estimate of $1.15 billion by 2.5%.The year-over-year upside was driven by solid sales growth delivered by both its segments.HEICO’s Operational UpdateHEICO’s cost of sales jumped 15.9% year over year to $723.6 million.The company’s selling, general and administrative (SG&A) expenses rose 9.1% to $195.1 million.Interest expenses declined 9.2% to $29.5 million from $32.5 million in the prior-year quarter.HEI’s Segmental Performance in Q1Flight Support Group: Net sales from this segment rose 15% year over year to $820 million. This rise was driven by strong organic growth of 12% and the impact of its fiscal 2025 acquisitions.The segment’s operating income climbed 20.8% year over year to $200.7 million. This increase was backed by solid net sales growth, an improved gross profit margin and SG&A expense efficiencies realized from the net sales growth.Electronic Technologies Group: The segment’s net sales jumped 12.2% to $370.7 million. This rise was driven by strong organic growth of 6% and the impact from its fiscal 2025 and 2026 acquisitions.The segment’s operating income decreased 4.2% year over year to $73.2 million. This decline was due to a decrease in gross profit margin.HEI’s Financial DetailsAs of Jan. 31, 2026, HEI’s cash and cash equivalents totaled $261 million compared with $217.8 million as of Oct. 31, 2025.Cash flow provided by operating activities was $178.6 million during the first quarter of fiscal 2026, reflecting a decline of 12% from the prior-year period’s level.HEICO reported a long-term debt (net of current maturities) of $2.5 billion as of Jan. 31, 2026, up from $2.16 billion as of Oct. 31, 2025.How Have Estimates Been Moving Since Then?It turns out, estimates review flatlined during the past month.VGM ScoresCurrently, Heico has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.Outlook Heico has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Just Released: Zacks Top 10 Stocks for 2026Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Heico Corporation (HEI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks