Heico Corporation is set to release its fiscal third-quarter earnings after Tuesday’s market close, with analysts projecting a 20% year-over-year increase in earnings to $1.51 per share and a 17% rise in revenue to $1.35 billion.
The company’s performance in the prior quarter underscored its growth trajectory, with adjusted earnings of $1.66 per share on $1.38 billion in revenue, surpassing Wall Street forecasts by 25% on earnings and 10% on revenue. Over the past 60 days, analyst estimates for the current quarter have edged higher, with earnings per share rising 2% and revenue estimates increasing 0.37%.
Heico’s valuation remains elevated, with a forward price-to-earnings ratio of 48 and a Morgan Stanley price target of $370, implying roughly 23% upside from the current share price of $259. The company’s trailing growth metrics reflect its strong position in aerospace components, with diluted earnings per share up 31%, revenue up 19%, and EBITDA up 24% over the trailing period.
The Flight Support Group, which supplies aftermarket parts for commercial aircraft, continues to benefit from sustained demand in the aviation sector’s aftermarket cycle. In contrast, the Electronic Technologies Group, serving defense and space customers, is navigating a normalization in spending following recent elevated outlays. Heico’s gross profit margin stands at 40%, supported by its premium positioning in high-margin aerospace components.
Recent acquisitions announced in April further reinforce Heico’s expansion strategy. The Flight Support Group agreed to acquire 80% of Sherwood Avionics and Accessories, while the Electronic Technologies Group secured a 90% stake in Southwest Antennas. These deals align with Heico’s focus on strengthening its aftermarket and defense-related offerings.
