Heico (NYSE:HEI) Issues Quarterly Earnings Results, Beats Estimates By $0.16 EPS

Key Points

• Heico reported quarterly EPS of $1.67, beating analysts’ consensus estimate of $1.51 by $0.16. The company posted a 16.08% net margin and 17.52% return on equity.
• Shares fell 0.4% to $351.19 during Tuesday trading, despite the earnings beat. Heico’s market capitalization was approximately $49.05 billion.
• Analysts maintain a generally positive outlook, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $379.56; Citigroup recently raised its target to $429.

Heico (NYSE:HEI - Get Free Report) released its earnings results on Tuesday. The aerospace company reported $1.67 EPS for the quarter, beating the consensus estimate of $1.51 by $0.16, Zacks reports. Heico had a return on equity of 17.52% and a net margin of 16.08%.

Heico Stock Down 0.4%

NYSE:HEI traded down $1.48 during trading hours on Tuesday, hitting $351.19. The stock had a trading volume of 551,386 shares, compared to its average volume of 592,768. The company has a market cap of $49.05 billion, a PE ratio of 62.71, a price-to-earnings-growth ratio of 3.58 and a beta of 1.04. The business has a 50 day simple moving average of $353.37 and a two-hundred day simple moving average of $321.01. Heico has a 1-year low of $256.11 and a 1-year high of $376.86. The company has a current ratio of 2.92, a quick ratio of 1.36 and a debt-to-equity ratio of 0.53.

Heico Announces Dividend

The company also recently disclosed a dividend, which was paid on Wednesday, July 15th. Shareholders of record on Wednesday, July 1st were given a $0.13 dividend. The ex-dividend date of this dividend was Wednesday, July 1st. This represents a yield of 7.0%. Heico's dividend payout ratio (DPR) is 4.64%.

Analysts Set New Price Targets

A number of equities analysts have weighed in on the stock. Zacks Research raised shares of Heico from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, June 9th. Wells Fargo & Company set a $350.00 price objective on shares of Heico and gave the company an "equal weight" rating in a research note on Monday, June 1st. Rothschild & Co Redburn set a $360.00 target price on Heico and gave the company a "buy" rating in a report on Wednesday, May 13th. Royal Bank Of Canada boosted their price target on Heico from $375.00 to $390.00 and gave the company an "outperform" rating in a research report on Friday, May 29th. Finally, Citigroup restated a "buy" rating and set a $429.00 price target (up from $410.00) on shares of Heico in a research note on Thursday, August 13th. Three equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $379.56.

Insider Buying and Selling at Heico

In related news, CAO Bradley K. Rowen sold 1,326 shares of the firm's stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $241.63, for a total transaction of $320,401.38. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 4.86% of the company's stock.

Hedge Funds Weigh In On Heico

A number of institutional investors and hedge funds have recently added to or reduced their stakes in HEI. IFC & Insurance Marketing Inc. purchased a new stake in shares of Heico during the fourth quarter worth about $26,000. Birchwood Financial Partners Inc. purchased a new position in Heico in the fourth quarter valued at about $32,000. Miller Capital Partners Inc. purchased a new stake in Heico during the 4th quarter worth approximately $70,000. Aster Capital Management DIFC Ltd acquired a new position in shares of Heico in the 4th quarter valued at approximately $118,000. Finally, Greenline Wealth Management LLC purchased a new position in shares of Heico during the 4th quarter valued at approximately $118,000. 27.12% of the stock is owned by hedge funds and other institutional investors.

About Heico

HEICO Corporation is an aerospace, defense and electronics company that designs, manufactures, and sells a range of products and provides repair and aftermarket services. Headquartered in Hollywood, Florida, HEICO supplies replacement components, repair services and engineered systems for commercial and business aviation, military and space markets as well as for selected industrial and medical customers. The company's offerings are focused on sustaining and improving the reliability and availability of complex equipment across its end markets.

HEICO operates through two principal business areas.

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