Fool Cheat Sheet: HEICO Earnings (HEI)

Fool Cheat Sheet: HEICO Earnings

HEICO (NYSE: HEI ) reported earnings Dec. 15. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Oct. 31 (Q4), HEICO beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly, and earnings per share expanded significantly.

Margins shrank across the board.

Revenue details
HEICO booked revenue of $209 million. The 11 analysts polled by S&P Capital IQ predicted a top line of $188 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.44. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.43 per share. GAAP EPS of $0.44 for Q4 were 20% higher than the prior-year quarter's $0.37 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 35.6%, 40 basis points worse than the prior-year quarter. Operating margin was 17.9%, 50 basis points worse than the prior-year quarter. Net margin was 8.9%, 30 basis points worse than the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods.

Looking ahead
What does the future hold?

Next quarter's average estimate for revenue is $198 million. On the bottom line, the average EPS estimate is $0.45 (There are eight revenue estimates and five EPS estimates.)

For the full year ending 2012, the average estimate for revenue is $877 million. The average EPS estimate is $1.92. (There are three revenue estimates and eight EPS estimates.)

Investor sentiment
The stock has a three-star rating at Motley Fool CAPS, with 110 members out of 125 rating the stock outperform, and 15 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give HEICO a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on HEICO is outperform, with an average price target of $58.38.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Comments from our Foolish Readers

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Report this Comment On December 30, 2011, at 1:44 PM, crca99 wrote:

Thank you for choosing HEI for your in depth analysis. It's been lucky choice for me to hold over past decade. Wouldn't recommend buying now.