Why Heico Corp (NYSE: HEI) stock is going gangbusters today

Free $100 Forex No-Deposit Bonus

Heico Corp (NYSE: HEI) rose over 7% in the pre-market session of May 27th, 2020 (as of 7:52 pm GMT-4; Source: Google finance) after the company posted better than expected results for the second quarter of FY 20. In the second quarter of fiscal 2020, net income declined 8% to $75.5 million as compared to $81.8 million in the second quarter of fiscal 2019. During fiscal 2020, the company had successfully completed two acquisitions and the company completed five acquisitions over the past year. The company has no significant debt maturities until fiscal 2023 and intends to utilize the financial strength and flexibility to aggressively pursue high quality acquisitions of various sizes to accelerate growth and maximize shareholder returns.

Meanwhile, due to COVID-19, the company’s businesses that operate within the commercial aerospace industry have been significantly affected due to the significant decline in global commercial air travel that began in March 2020. Once commercial air travel resumes, cost savings will most likely be a priority for the commercial aviation customers and the company is expecting recovery in demand for the commercial aviation products, which frequently offer the aircraft operators with significant savings.

HEI in the second quarter of FY 20 has reported the adjusted earnings per share of $0.55, beating the analysts’ estimates for the adjusted earnings per share of $0.44. The company had reported 9 percent fall in the adjusted revenue to $468.1 million in the first quarter of FY 20, beating the analysts’ estimates for revenue to $462.86 million. In the second quarter of fiscal 2020, operating income fell by 9% to $108.2 million, as compared to $119.2 million in the second quarter of fiscal 2019. The Company’s consolidated operating margin was 23.1% in both the second quarter of fiscal 2020 and 2019. EBITDA fell by 9% to $130.0 million, as compared to $142.2 million in the second quarter of fiscal 2019.

Moreover, the Flight Support Group’s net sales fell by 18% to $252.0 million in the second quarter of fiscal 2020, as compared to $308.3 million in the second quarter of fiscal 2019. The Flight Support Group’s operating margin contracted to 18.9% in the second quarter of fiscal 2020, as compared to 20.2% in the second quarter of fiscal 2019. The Electronic Technologies Group’s net sales rose by 2% to $219.0 million in the second quarter of fiscal 2020 on the back of the favorable impact from the fiscal 2019 and 2020 acquisitions partially offset by an organic net sales decline of 2%. The decline in organic net sales is mainly due to lower shipments of the space products partially offset by increased demand for the defense products.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.