Earnings Update: HEICO Corporation (NYSE:HEI) Just Reported Its Full-Year Results And Analysts Are Updating Their Forecasts

Shareholders might have noticed that HEICO Corporation (NYSE:HEI) filed its yearly result this time last week. The early response was not positive, with shares down 7.0% to US$239 in the past week. It was a credible result overall, with revenues of US$3.9b and statutory earnings per share of US$3.67 both in line with analyst estimates, showing that HEICO is executing in line with expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for HEICO

Taking into account the latest results, the consensus forecast from HEICO's 15 analysts is for revenues of US$4.22b in 2025. This reflects a notable 9.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 15% to US$4.27. In the lead-up to this report, the analysts had been modelling revenues of US$4.23b and earnings per share (EPS) of US$4.25 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$270. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic HEICO analyst has a price target of US$316 per share, while the most pessimistic values it at US$196. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that HEICO's revenue growth is expected to slow, with the forecast 9.5% annualised growth rate until the end of 2025 being well below the historical 16% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.9% annually. Even after the forecast slowdown in growth, it seems obvious that HEICO is also expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for HEICO going out to 2027, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for HEICO that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.