What To Expect From HEICO's (HEI) Q2 Earnings

Aerospace and defense company HEICO (NSYE:HEI) will be announcing earnings results this Monday afternoon. Here’s what to look for.

HEICO beat analysts’ revenue expectations by 3.5% last quarter, reporting revenues of $1.10 billion, up 14.9% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

Is HEICO a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting HEICO’s revenue to grow 12.3% year on year to $1.11 billion, slowing from the 37.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.14 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. HEICO has missed Wall Street’s revenue estimates three times over the last two years.

Looking at HEICO’s peers in the aerospace segment, some have already reported their Q2 results, giving us a hint as to what we can expect. AerSale delivered year-on-year revenue growth of 39.3%, beating analysts’ expectations by 24.4%, and AAR reported revenues up 14.9%, topping estimates by 8.6%. AerSale traded up 23.2% following the results while AAR was also up 13.4%.

Read our full analysis of AerSale’s results here and AAR’s results here.

There has been positive sentiment among investors in the aerospace segment, with share prices up 3.6% on average over the last month. HEICO is down 4% during the same time and is heading into earnings with an average analyst price target of $325 (compared to the current share price of $310.95).

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