Heico Corporation is set to release its fiscal third-quarter earnings after the market close on Tuesday, with consensus estimates calling for earnings of $1.51 per share and revenue of $1.35 billion.
The outlook reflects year-over-year growth of nearly 20% in earnings and 17% in revenue, though both metrics are expected to decline sequentially from the prior quarter. In the fiscal second quarter ended April 30, Heico reported earnings of $1.66 per share and revenue of $1.38 billion, exceeding Wall Street expectations by 25% on the bottom line.
The company’s stock closed Tuesday at $352.67, near the midpoint of its 52-week range of $256.11 to $376.86. With a market capitalization of $41.4 billion, Heico trades at a forward price-to-earnings ratio of 48, while the consensus price target stands at $389.26, implying roughly 10% upside potential. Among the 22 analysts covering the stock, 14 rate it a Buy, with no Sell recommendations. Earnings per share estimates have risen about 2% over the past 60 days.
Acquisitions may help offset the expected sequential slowdown. In April, Heico acquired 80% of Sherwood Avionics and 90% of Southwest Antennas, expanding its presence in avionics components. The company has a history of exceeding revenue forecasts, including a more than 10% beat in May, and has sustained revenue growth above 18% over the trailing twelve months while expanding gross margins to above 40%.
