Zacks Research Issues Negative Outlook for Heico Earnings

Key Points

• Heico Corporation's Q2 2027 earnings per share estimate was revised down from $1.69 to $1.65 by Zacks Research, while the full-year earnings estimate is set at $4.20 per share.
• The aerospace company recently declared an increased semi-annual dividend of $0.12 per share, up from $0.11, reflecting a yield of 10.0%.
• Recent trading showed Heico's shares down 0.2% to $312.26, with institutional and hedge funds owning 27.12% of the company's stock.

Heico Corporation (NYSE:HEI - Free Report) - Investment analysts at Zacks Research decreased their Q2 2027 earnings per share estimates for shares of Heico in a research note issued to investors on Tuesday, August 12th. Zacks Research analyst R. Department now expects that the aerospace company will earn $1.65 per share for the quarter, down from their prior estimate of $1.69. The consensus estimate for Heico's current full-year earnings is $4.20 per share. Zacks Research also issued estimates for Heico's Q3 2027 earnings at $1.24 EPS and FY2027 earnings at $5.58 EPS.

Heico (NYSE:HEI - Get Free Report) last announced its earnings results on Tuesday, May 27th. The aerospace company reported $1.12 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.03 by $0.09. The business had revenue of $1.10 billion during the quarter, compared to analyst estimates of $1.06 billion. Heico had a return on equity of 15.88% and a net margin of 14.54%. Heico's revenue for the quarter was up 14.9% compared to the same quarter last year. During the same period last year, the company earned $0.88 EPS.

HEI has been the subject of several other reports. Barclays set a $280.00 target price on Heico and gave the stock an "equal weight" rating in a research report on Monday, June 2nd. UBS Group raised their target price on Heico from $264.00 to $306.00 and gave the stock a "neutral" rating in a research report on Thursday, May 29th. Morgan Stanley raised their target price on Heico from $305.00 to $330.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 17th. Wells Fargo & Company raised their target price on Heico from $244.00 to $278.00 and gave the stock an "equal weight" rating in a research report on Friday, May 30th. Finally, Bank of America raised their target price on Heico from $320.00 to $355.00 and gave the stock a "buy" rating in a research report on Thursday, July 3rd. Six analysts have rated the stock with a hold rating and eight have given a buy rating to the company. According to MarketBeat.com, Heico has an average rating of "Moderate Buy" and an average target price of $301.45.

Heico Trading Down 0.2%

NYSE:HEI traded down $0.67 during trading hours on Thursday, hitting $312.26. 48,751 shares of the company were exchanged, compared to its average volume of 513,848. The stock has a market capitalization of $43.44 billion, a price-to-earnings ratio of 72.98, a price-to-earnings-growth ratio of 3.93 and a beta of 1.11. The company has a current ratio of 3.43, a quick ratio of 1.56 and a debt-to-equity ratio of 0.56. Heico has a one year low of $216.68 and a one year high of $338.92. The company has a fifty day simple moving average of $316.90 and a 200 day simple moving average of $276.20.

Heico Increases Dividend

The firm also recently declared a semi-annual dividend, which was paid on Tuesday, July 15th. Shareholders of record on Tuesday, July 1st were issued a dividend of $0.12 per share. This represents a yield of 10.0%. The ex-dividend date was Tuesday, July 1st. This is an increase from Heico's previous semi-annual dividend of $0.11. Heico's dividend payout ratio (DPR) is 5.61%.

Insiders Place Their Bets

In other news, Director Alan Schriesheim sold 35,000 shares of the firm's stock in a transaction dated Tuesday, June 3rd. The stock was sold at an average price of $298.36, for a total value of $10,442,600.00. Following the completion of the sale, the director directly owned 122,197 shares in the company, valued at $36,458,696.92. This trade represents a 22.27% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Frank J. Schwitter sold 356 shares of the firm's stock in a transaction dated Tuesday, June 3rd. The shares were sold at an average price of $299.10, for a total value of $106,479.60. Following the completion of the sale, the director owned 1,500 shares of the company's stock, valued at approximately $448,650. This represents a 19.18% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 91,656 shares of company stock worth $28,534,115. Company insiders own 9.55% of the company's stock.

Hedge Funds Weigh In On Heico

Hedge funds have recently added to or reduced their stakes in the stock. Artemis Investment Management LLP bought a new position in shares of Heico during the 1st quarter worth approximately $7,612,000. Baker Avenue Asset Management LP bought a new position in shares of Heico during the 1st quarter worth approximately $345,000. Freedom Day Solutions LLC bought a new position in shares of Heico during the 1st quarter worth approximately $2,653,000. Praxis Investment Management Inc. lifted its position in shares of Heico by 24.9% during the 1st quarter. Praxis Investment Management Inc. now owns 8,830 shares of the aerospace company's stock worth $2,359,000 after buying an additional 1,760 shares in the last quarter. Finally, Vantage Investment Partners LLC lifted its position in shares of Heico by 1.1% during the 1st quarter. Vantage Investment Partners LLC now owns 162,145 shares of the aerospace company's stock worth $43,324,000 after buying an additional 1,772 shares in the last quarter. Institutional investors and hedge funds own 27.12% of the company's stock.

About Heico

HEICO Corporation, through its subsidiaries, designs, manufactures, and sells aerospace, defense, and electronic related products and services in the United States and internationally. Its Flight Support Group segment provides jet engine and aircraft component replacement parts; thermal insulation blankets and parts; renewable/reusable insulation systems; and specialty components.

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