Heico Corp (NYSE: HEI) stock surged over 8.2% on 28th August, 2018 (As of 10:48 AM GMT-4; Source: Google finance) after the company raised the full FY18 net sales and net income growth estimates. For FY 18, HEI expects net sales growth to be in the range of 15% – 16% and in net income to be in the range of 35% – 37%, up from the prior growth estimates in net sales of 13% – 14% and in net income of 33% – 35%. Additionally, HEI expects consolidated operating margin to be approximate 21%, cash flow from operations to be approximate $310 million, depreciation and amortization expense to be approximate $77 million and capital expenditures to be approximate $45 million.
For the Flight Support Group, HEI expects FY 18 net sales growth to be in the range of approximately 11% – 12% over the prior year, up from the prior estimate of 10% and the full year Flight Support Group’s operating margin is expected to be approximate 19.0%, up from the prior estimate of 18.5% – 19.0%. Further, the company now estimate the Flight Support Group’s full year organic net sales growth rate to be in the mid- to high-single digits.
HEI expects full year net sales growth of Electronic Technologies Group to be in the range of approximately 20% – 21% over the prior year, up from the prior estimate of 18% – 20%, and the full year Electronic Technologies Group’s operating margin to be in the range of approximate 28.5% – 29.0%, up from the prior estimate of 28.0% – 29.0%. Further, the company expects the Electronic Technologies Group’s organic net sales growth rate to be in the mid-single digits.
HEI in the third quarter of FY 18 has reported the 47% growth in the net income to a record $67.1 million. Net sales increased 19% to a record $465.8 million in the third quarter of fiscal 2018, Operating income increased 33% to $101.4 million in the third quarter of fiscal 2018. The Company’s consolidated operating margin improved to 21.8% in the third quarter of fiscal 2018, up from 19.4% in the third quarter of fiscal 2017.
Additionally, ash flow provided by operating activities increased 34% to $109.7 million in the third quarter of fiscal 2018. The company’s total debt to shareholders’ equity ratio decreased to 43.6% as of July 31, 2018, down from 54.0% as of October 31, 2017.
During FY18, the company has successfully completed three acquisitions and have completed four acquisitions over the past year.