The 10-second takeaway
For the quarter ended Jan. 31 (Q1), HEICO beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share improved.
Gross margins grew, operating margins contracted, and net margins dropped.
HEICO booked revenue of $212.7 million. The 13 analysts polled by S&P Capital IQ foresaw revenue of $206.9 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $174.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.45. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.44 per share. GAAP EPS of $0.45 for Q1 were 13% higher than the prior-year quarter's $0.40 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 37.2%, 50 basis points better than the prior-year quarter. Operating margin was 18.1%, 50 basis points worse than the prior-year quarter. Net margin was 9.0%, 80 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $219.7 million. On the bottom line, the average EPS estimate is $0.47.
Next year's average estimate for revenue is $905.4 million. The average EPS estimate is $1.95.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 106 members out of 120 rating the stock outperform, and 14 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 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 $60.
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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