Why Heico Stock Zoomed Nearly 6% Higher Today
Key Points
The electronic components maker published its final set of financial results for its fiscal 2025.
It handily beat the consensus analyst estimates for both sales and profitability.
Electrical components manufacturer Heico's (NYSE: HEI) stock provided a nice jolt of energy for its investors as the trading week came to an end. The industrial company's share price improved by almost 6% across Friday's session, thanks to record-breaking fiscal fourth-quarter results published after market close Thursday.
Fresh all-time highs
In the quarter, Heico's net sales increased a robust 19% year-over-year to reach a new all-time high for the company of $1.21 billion. Net income according to generally accepted accounting principles (GAAP) also set a company record, increasing by 35% to $188 million, or $1.33 per share.
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Both headline figures comfortably topped the average analyst estimates. The pundit consensus for net sales was $1.17 billion, while that for GAAP net profit was $1.21 per share.
Both of Heico's operating segments did very well during the quarter, particularly the larger flight support group. Its net sales soared nearly 21% higher year-over-year to more than $834 million. The electronic technologies group wasn't slacking either, though, with a 14% improvement to almost $385 million.
Taking flight
In its earnings release, Heico attributed the improvements to a mix of organic growth and contributions from recent acquisitions (like its July purchase of highly specialized aircraft components company Gables Engineering). This shows that the company is effective at selling its more "classic" products while finding complementary businesses to broaden its appeal.
Although the stock isn't cheap to own, it has quite a compelling business mix and is currently selling into high-growth sectors, primarily aerospace. To me, that makes it feel like a buy.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Heico. The Motley Fool has a disclosure policy.