Heico (HEI) Down 3.7% 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 3.7% 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 its most recent earnings report in order to get a better handle on the important catalysts. HEICO's Q4 Earnings Beat Estimates, Sales Increase Year Over YearHEICO Corporation’s fourth-quarter fiscal 2024 earnings per share (EPS) of 99 cents beat the Zacks Consensus Estimate of 97 cents by 2.1%. The bottom line also improved 33.8% from the prior-year quarter’s 74 cents.For fiscal 2024, the company reported adjusted earnings of $3.67 per share, which indicates growth of 26.1% from $2.91 at the end of fiscal 2023.HEI’s Total SalesThe company’s net sales increased 8.3% year over year to $1.01 billion. However, the figure missed the Zacks Consensus Estimate of $1.04 billion by 2.5%.The year-over-year upside was driven by record operating results from the Flight Support Group segment as well as strong contributions from HEI’s fiscal 2023 and 2024 acquisitions.For fiscal 2024, the company reported net sales of $3.86 billion, which indicates growth of 30% from $2.97 billion at the end of fiscal 2023.HEICO’s Operational UpdateHEICO’s cost of sales increased 8.4% year over year to $620 million.The company’s selling, general and administrative expenses rose 0.01% to $175.3 million.Interest expenses declined 18.5% to $35.4 million from $43.4 million in the prior-year quarter.Segmental PerformanceFlight Support Group: Net sales from this segment surged 15% year over year to $691.8 million. This rise was driven by strong organic growth of 12% and the positive impact of its fiscal 2023 and 2024 acquisitions.The segment’s operating income soared 34.8% year over year to $154.5 million. This increase was due to solid net sales growth, decreased acquisition costs and an improved gross profit margin.Electronic Technologies Group: The segment’s net sales decreased 1.8% to $336.2 million due to lower net sales of defense and electronics products.The segment’s operating income declined 5.3% year over year to $81.8 million, due to a less favorable gross profit margin caused by the decreased net sales of defense and electronic products.HEI’s Financial DetailsAs of Oct. 31, 2024, HEI’s cash and cash equivalents totaled $162.1 million compared with $171 million as of Oct. 31, 2023.Cash flow provided by operating activities was $672.4 million during fiscal 2024, reflecting a 49.8% rise from the prior-year period’s level.HEICO reported a long-term debt (net of current maturities) of $2.23 billion as of Oct. 31, 2024, down from $2.46 billion as of Oct. 31, 2023.How Have Estimates Been Moving Since Then?It turns out, estimates review flatlined during the past month.VGM ScoresAt this time, Heico has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade 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.OutlookHeico has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks