Results: HEICO Corporation Exceeded Expectations And The Consensus Has Updated Its Estimates

Last week, you might have seen that HEICO Corporation (NYSE:HEI) released its first-quarter result to the market. The early response was not positive, with shares down 2.3% to US$190 in the past week. It looks like a credible result overall - although revenues of US$896m were in line with what the analysts predicted, HEICO surprised by delivering a statutory profit of US$0.82 per share, a notable 10% above expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for HEICO

After the latest results, the 17 analysts covering HEICO are now predicting revenues of US$3.89b in 2024. If met, this would reflect a solid 20% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 14% to US$3.49. Before this earnings report, the analysts had been forecasting revenues of US$3.83b and earnings per share (EPS) of US$3.48 in 2024. 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.

There were no changes to revenue or earnings estimates or the price target of US$206, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values HEICO at US$242 per share, while the most bearish prices it at US$170. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting HEICO's growth to accelerate, with the forecast 27% annualised growth to the end of 2024 ranking favourably alongside historical growth of 8.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.5% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect HEICO to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$206, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on HEICO. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for HEICO going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - HEICO has 1 warning sign we think 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.