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.
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 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.
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.
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.)
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.
- Add HEICO to My Watchlist.
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.