Heico Corp Stock Price, News & Analysis

HEICO Corporation reported a strong performance for Q3 FY2022, with net sales reaching a record $569.5 million, marking a 21% increase from the previous year. Operating income rose 28% to $128.7 million, improving the operating margin to 22.6%. Net income also grew by 7% to $82.5 million, or $0.60 per diluted share. The company noted robust growth in its Flight Support Group, driven by a recovery in commercial aerospace, with eight consecutive quarters of growth. However, the Electronic Technologies Group faced challenges with decreasing defense product sales and supply chain delays.

HEICO Corporation will release its third-quarter financial results on August 29, 2022, after NYSE closing. The results will be accessible on the company's website. A conference call is scheduled for August 30, 2022, at 9:00 a.m. EDT, where the company will discuss these results. To join the call, participants can dial US and Canada at (888) 504-7949 or International at (323) 289-6017 and provide Conference ID 762228. HEICO has two classes of common stock: HEI and HEI.A, differing primarily in voting rights.

D.A. Davidson & Co. has acted as a financial adviser in the sale of Sensor Systems, Inc. to HEICO Electronic Technologies Group, part of HEICO Corporation (NYSE:HEI, HEI.A). Sensor Systems, a leading manufacturer of airborne antennas for commercial and military applications, has a legacy of over 50 years. Its antennas feature in nearly all large commercial transport aircraft built in this timeframe. The transaction aims to ensure the company's ongoing operations and growth under HEICO's stewardship.

HEICO Corporation has acquired Sensor Systems for cash and about 575,000 shares of HEICO Class A common stock. This acquisition is anticipated to positively impact earnings in the subsequent year. Sensor, based in Chatsworth, CA, specializes in airborne antennas for both commercial and military use, with a history spanning over 50 years. HEICO aims to maintain Sensor's operations and employee structure post-acquisition. The deal received regulatory clearance and exemplifies HEICO's commitment to innovation and quality in aviation technology.

HEICO Corporation announced its largest acquisition to date, acquiring Exxelia International for €453 million in cash and assuming €14 million in liabilities. This acquisition aims to enhance HEICO's portfolio in high-reliability electronic components, especially for aerospace and defense sectors. Exxelia, set to generate approximately €190 million in revenue for 2022, will add geographic and product diversity to HEICO. The acquisition is expected to be accretive to earnings within a year, subject to regulatory approvals and necessary consultations.

VPT, Inc., a subsidiary of HEICO, recently launched the VSC Series of DC-DC converters specifically designed for "New Space" applications. This series, providing output power ranging from 5W to 30W, is optimized for smaller satellites in low earth orbits and NASA Class D missions. The converters are radiation tested and comply with stringent performance standards, making them suitable for critical space applications. VPT emphasizes competitive pricing and immediate availability for these products, which adhere to U.S. export regulations.

HEICO Corporation (NYSE:HEI.A and HEI) has acquired 96% of Accurate Metal Machining for cash, along with potential additional payments based on post-closing earnings. Accurate, a manufacturer of high-reliability components for aerospace and defense, is expected to positively impact HEICO's earnings within a year. This acquisition strengthens HEICO's Specialty Products Group and expands its capabilities in crucial markets. Accurate's leadership and workforce will remain unchanged, ensuring continuity in operations and customer relationships.

HEICO Corporation announced a semi-annual cash dividend of $.09 per share, approved by its Board of Directors. This dividend will be distributed on July 15, 2022, to shareholders of record as of July 1, 2022. With this declaration, HEICO marks its 88th consecutive semi-annual cash dividend since 1979. The company has shown strong performance and excellent cash flow as they enter the second half of fiscal 2022. Notably, HEICO's stock value has increased approximately 530 times since 1990, reflecting significant growth.

HEICO Corporation reported a robust 20% increase in net income to $85 million for Q2 2022, translating to $0.62 per diluted share, driven by a 15% rise in net sales to $538.8 million. Operating income surged 27% to a record $122.8 million, with the consolidated operating margin improving to 22.8%. The Flight Support Group experienced outstanding growth, with net sales up 33%, while the Electronic Technologies Group reported a decline in defense product sales. Despite strong performance, HEICO did not provide fiscal 2022 guidance, citing uncertainty around COVID-19 impacts.