Aerospace and defense company HEICO (NSYE:HEI) will be announcing earnings results this Thursday afternoon. Here’s what to look for.
HEICO beat analysts’ revenue expectations by 3% last quarter, reporting revenues of $1.15 billion, up 15.7% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ adjusted operating income estimates.
Is HEICO a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting HEICO’s revenue to grow 15.7% year on year to $1.17 billion, improving from the 8.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.22 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. HEICO has missed Wall Street’s revenue estimates twice over the last two years.
Looking at HEICO’s peers in the aerospace segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Woodward delivered year-on-year revenue growth of 16.5%, beating analysts’ expectations by 5.9%, and Rocket Lab reported revenues up 48%, topping estimates by 2.1%. Woodward traded up 10.8% following the results while Rocket Lab was down 1.7%.
Read our full analysis of Woodward’s results here and Rocket Lab’s results here.
There has been positive sentiment among investors in the aerospace segment, with share prices up 8.3% on average over the last month. HEICO’s stock price was unchanged during the same time.
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