HEICO's Q2 Earnings Surpass Estimates, Sales Increase Y/Y

HEICO Corporation’s HEI second-quarter fiscal 2025 earnings per share (EPS) of $1.12 beat the Zacks Consensus Estimate of $1.02 by 9.8%. The bottom line also improved 27.3% from the prior-year quarter’s 88 cents. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)The year-over-year improvement in the bottom line can be attributed to robust sales growth and higher operating income from the prior-year quarter.HEI’s Total SalesThe company’s net sales increased 14.9% year over year to $1.10 billion. The figure also beat the Zacks Consensus Estimate of $1.06 billion by 3.7%.The year-over-year upside was driven by increased demand across all of Flight Support Group's product lines and sales growth for the space and aerospace products of the Electronic Technologies Group.Heico Corporation Price, Consensus and EPS Surprise Heico Corporation price-consensus-eps-surprise-chart | Heico Corporation QuoteHEICO’s Operational UpdateHEICO’s cost of sales increased 13.1% year over year to $660 million.The company’s selling, general and administrative (SG&A) expenses rose 16.6% to $189.7 million.Interest expenses declined 14.7% to $32.9 million from $38.5 million in the prior-year quarter.HEI’s Segmental PerformanceFlight Support Group: Net sales from this segment surged 18.5% year over year to $767.1 million. This rise was driven by strong organic growth of 14% and the positive impact of its fiscal 2024 and 2025 acquisitions.The segment’s operating income soared 24.3% year over year to $185 million. This increase was due to solid net sales growth and an improved gross profit margin.Electronic Technologies Group: The segment’s net sales increased 7.2% to $342.2 million. This rise was driven by strong organic growth of 4% and the positive impact of its fiscal 2024 and 2025 acquisitions.The segment’s operating income increased 3.5% year over year to $77.9 million. This increase was due to solid net sales growth and SG&A expense efficiencies realized from the net sales growth.HEI’s Financial DetailsAs of April 30, 2025, HEI’s cash and cash equivalents totaled $242.3 million compared with $162.1 million as of Oct. 31, 2024.Cash flow provided by operating activities was $407.7 million during the first half of fiscal 2025, reflecting a 61.3% rise from the prior-year period’s level.HEICO reported a long-term debt (net of current maturities) of $2.27 billion as of April 30, 2025, up from $2.23 billion as of Oct. 31, 2024.HEICO’s Zacks RankHEICO currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Recent Defense ReleasesLockheed Martin Corporation LMT reported first-quarter 2025 earnings of $7.28 per share, which beat the Zacks Consensus Estimate of $6.34 by 14.8%. The bottom line increased 15% from the year-ago quarter's reported figure of $6.33 per share.The company’s net sales were $17.96 billion, which beat the consensus estimate of $17.76 billion by 1.1%. The top line also increased 4.5% from $17.20 billion reported in the year-ago quarter.Northrop Grumman Corporation NOC reported first-quarter 2025 adjusted earnings of $6.06 per share, which missed the Zacks Consensus Estimate of $6.21 by 2.4%.NOC’s total sales of $9.47 billion in the first quarter missed the consensus estimate of $9.91 billion by 4.4%. The top line also declined 6.6% from $10.13 billion reported in the year-ago quarter.RTX Corporation’s RTX first-quarter 2025 adjusted earnings per share of $1.47 beat the Zacks Consensus Estimate of $1.35 by 8.9%. The bottom line also improved 9.7% from the year-ago quarter’s level of $1.34 per share, driven by growth in adjusted segment operating profit.Its first-quarter sales totaled $20.31 billion, which surpassed the consensus estimate of $19.71 billion by 3%. The top line also surged a solid 5.2% from $19.31 billion recorded in the first quarter of 2024.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lockheed Martin Corporation (LMT): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report Heico Corporation (HEI): Free Stock Analysis Report RTX Corporation (RTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks