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Jan 31, 2020
Heico Q1 2020 Earnings Report
HEICO reported a record net income with increases in net sales and operating income.
Key Takeaways
HEICO Corporation reported a strong first quarter with a 54% increase in net income, a 13% increase in operating income, and a 9% increase in net sales. The company's Flight Support Group and Electronic Technologies Group both contributed to the positive results.
Net income increased 54% to a record $121.9 million, or 89 cents per diluted share.
Operating income increased 13% to $111.0 million.
Net sales increased 9% to $506.3 million.
EBITDA increased 13% to $132.8 million.
Heico
Heico
Heico Revenue by Segment
Revenue by Segment
Flight Support Group Revenue
CapyFin.comElectronic Tech Group Revenue
CapyFin.com Forward Guidance
HEICO anticipates continued net sales growth and is raising its full year net income growth estimate.
Positive Outlook
- Continued net sales growth within the Flight Support Group's commercial aviation and defense product lines.
- Growth within the Electronic Technologies Group, principally driven by demand for the majority of products.
- Commitments to developing new products and services.
- Further market penetration.
- Aggressive acquisition strategy.
Challenges Ahead
- Potential impact from the recent coronavirus outbreak as the impact to our businesses is uncertain and difficult to predict.
- Lower demand for commercial air travel or airline fleet changes or airline purchasing decisions.
- Product specification costs and requirements.
- Governmental and regulatory demands, export policies and restrictions, reductions in defense, space or homeland security spending by U.S. and/or foreign customers or competition from existing and new competitors.
- Economic conditions within and outside of the aviation, defense, space, medical, telecommunications and electronics industries.
Revenue & Expenses
Visualization of income flow from segment revenue to net income