Upcoming AWS Coverage on AAR Corp. Post-Earnings Results

LONDON, UK / ACCESSWIRE / December 20, 2016 / Active Wall St. announces its post-earnings coverage on HEICO Corp. (NYSE: HEI). The Company reported its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year 2016 (FY16) on December 13, 2016. The Hollywood, Florida-based Company's net income rose 16% y-o-y in the reported quarter; beating market consensus estimates. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of HEICO's competitors within the Aerospace/Defense Products & Services space, AAR Corp. (NYSE: AIR), will release its financial results for Q2 FY17 ended November 30, 2016, after the market closes on Wednesday, December 21, 2016. AWS will be initiating a research report on AAR Corp. in the coming days.

Today, AWS is promoting its earnings coverage on HEI; touching on AIR. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=HEI

http://www.activewallst.com/registration-3/?symbol=AIR

Earnings Reviewed

During Q4 FY16, HEICO's net sales increased 11% to a record $363.30 million from $328.67 million reported at the end of Q4 FY15. However, net sales numbers fell short of market consensus expectations by $9.36 million. The company attributed the record results during the quarter to acquisitions in both FY16 and FY15 along with organic growth within its Flight Support Group and increased demand for a majority of its Electronic Technology Group's products.

The defense and aerospace contractor reported a record net income attributed to HEICO of $44.26 million, or $0.65 per diluted share, during Q4 FY16, compared to $38.25 million, or $0.56 per diluted share, in the year ago same quarter. The Company's net income for Q4 FY16 outperformed Wall Street's expectations of $0.62 per diluted share.

For FY16, the Company's net sales rose to a record $1.38 billion from $1.19 billion in the year ago period. In FY16, net income attributed to HEICO came in at $156.19 million, or $2.29 per diluted share, compared to $133.36 million, or $1.97 per diluted share, in FY15.

Operating Metrics

During the three months ended on October 31, 2016, the Company's cost of sales increased to $227.62 million from $201.88 million in Q4 FY15. For the reported quarter, selling, general, and administrative expenses came in at $59.61 million compared to $57.84 million in Q4 FY15. The Company's operating income also increased to a record $76.08 million in Q4 FY16 from $68.95 million in the prior year's comparable quarter. Additionally, HEICO's consolidated operating margin for Q4 FY16 and Q4 FY15 came in at 20.9% and 21.0%, respectively.

Segment Performance

During Q4 FY16, Flight Support Group's net sales was $228.45 million, up from $218.27 million in Q4 FY15. The segment's operating income rose during Q4 FY16 to $44.67 million from $42.30 million in the prior year's same quarter.

Electronic Technologies Group contributed $138.34 million to total net sales during Q4 FY16, compared to $113.54 million in the last year comparable period. Furthermore, the segment's reported operating income improved to $36.75 million in Q4 FY16 from $32.84 million in the year ago quarter.

Cash Flow and Balance Sheet

In FY16, HEICO's cash flow from operations totaled $249.18 million compared to $172.86 million in a year ago period. As of October 31, 2016, the company had cash and cash equivalents balance of $42.96 million compared to $33.60 million, at the close of books on October 31, 2015. Additionally, the company reported long-term debt of $457.81 million as on October 31, 2016 versus $367.24 million as on October 31, 2015.

Dividend

In a separate press release on December 13, 2016, HEICO's Board of Directors announced a regular semi-annual cash dividend of $0.42 per share, payable on both classes of its common stock. The dividends are payable on January 18, 2017, to shareholders of record at close of business on January 04, 2017.

Outlook

In it guidance for full year FY17, HEICO anticipates net sales to grow in the range of 5% to 7% y-o-y. Net income during FY17 is forecasted to report a growth in the range of 7% to10% y-o-y. Furthermore, the Company anticipates consolidated operating margin in FY17 to be approximately 19% to 20%.

Stock Performance

At the closing bell, on Monday, December 19, 2016, HEICO's common stock closed the trading session at $78.64, climbing 2.48% from its previous closing price of $76.74. A total volume of 166.32 thousand shares have exchanged hands, which was higher than the 3-month average volume of 154.18 thousand shares. HEICO's stock price rallied 15.92% in the past three months, 20.74% in the previous six months, and 62.55% in the last twelve months. Furthermore, since the start of the year, shares of the Company have skyrocketed 44.84%. The stock is trading at a PE ratio of 35.63 and has a dividend yield of 0.23%.

HEICO's Class A shares ended yesterday's session at $65.75, gaining 2.81% from its previous day's closing of $63.95. A total volume of 93,905 shares exchanged hands during the trading session. The Company's Class A shares are trading at a PE ratio of 29.75 and have a dividend yield of 0.24%.

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SOURCE: Active Wall Street