Aerospace parts manufacturer Heico (HEI +0.26%) delivered better-than-expected quarterly results and forecast broad-based growth up ahead. Investors are pleased, sending shares of Heico up 7% as of 11:30 a.m. ET.
Image source: Getty Images.
Strong quarterly results
Heico is a manufacturer of components for a range of industrial applications, with a heavy emphasis on aerospace. The company earned $1.26 per share in its fiscal third quarter ending July 31 on revenue of $1.15 billion, topping Wall Street's $1.14 per share on $1.12 billion consensus estimate.
Revenue was up nearly 16% year over year, and operating income increased by 22%. The company also reported a 23.1% operating margin, up from 21.8% a year ago.
Total debt fell to 3.81 times net income in the quarter, down from 4.34 times net income on Oct. 31, 2024. Heico has historically used acquisitions to supplement growth, and the company's balance sheet gives it the ability to be opportunistic if opportunities arise.
NYSE: HEI
Key Data Points
Is Heico stock a buy?
Heico has now grown commercial aerospace sales for 20 consecutive quarters. Airlines are maxing out their fleets in response to strong travel demand, causing a need for more spare parts.
In a statement, company co-CEOs Eric and Victor Mendelson said "we remain confident" Heico can continue to grow both its aerospace and nonaerospace units.
Heico has used this formula to become one of the top-performing aerospace stocks over time, up 1,160% over the past decade.
These latest results show nothing to suggest the momentum can't continue, making Heico a top choice for investors seeking exposure to the aerospace market.
