Research Desk Line-up: KLX Inc. Post Earnings Coverage
LONDON, UK / ACCESSWIRE / September 12 2017 / Pro-Trader Daily has just published a free post-earnings coverage on HEICO Corp. (NYSE: HEI), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=HEI, following the Company's posting of its third quarter fiscal 2017 financial results on August 22, 2017. The defense and aerospace contractor beat top- and bottom-line expectations and also raised its sales and earnings guidance for the fiscal year. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Aerospace/Defense Products & Services industry. Pro-TD has currently selected KLX Inc. (NASDAQ: KLXI) for due-diligence and potential coverage as the Company reported on August 23, 2017 its financial results for Q2 2017 which ended on July 31, 2017. Register for a free membership today, and be among the early birds that get access to our report on KLX Inc. when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on HEI; also brushing on KLXI. With the links below you can directly download the report of your stock of interest-free of charge at:
http://protraderdaily.com/optin/?symbol=HEI
http://protraderdaily.com/optin/?symbol=KLXI
Earnings Reviewed
HEICO's (NYSE: HEI) net sales increased 10% to a record $391.5 million in Q3 FY17, up from $356.1 million in Q3 FY16. The Company's sales exceeded analysts' expectations of $392.1 million.
For Q3 FY17, HEICO's operating income grew 9% to $76.1 million, up from $69.9 million in Q3 FY16. The Company's consolidated operating margin was 19.4% and 19.6% in Q3 FY17 and Q3 FY16, respectively.
HEICO reported that net income increased 9% to a record $45.7 million, or $0.53 per diluted share, in Q3 FY17, up from $42.0 million, or $0.49 per diluted share, in Q3 FY16. The Company's earnings beat Wall Street's expectations of $0.52 per share.
HEICO's Segment Results
During Q3 FY17, the Company's Flight Support Group's net sales increased 16% to a record $258.0 million, up from $222.6 million in Q3 FY16. The gain in sales reflected organic growth of 6% and the impact of its recent profitable acquisitions. In the reported quarter, Flight Support Group's operating income increased 11% to a record $46.7 million, up from $42.0 million in the prior year's same quarter. The Flight Support Group's operating margin was 18.1% and 18.9% in Q3 FY17 and Q3 FY16, respectively.
During Q3 FY17, the Electronic Technologies Group's net sales increased 1% to $137.9 million, compared to $136.2 million in Q3 FY16. The increase in the reported quarter sales reflected increased demand for its aerospace, space, other electronics, and medical products, partially offset by a decrease in defense-related net sales principally due to customer delays in getting some anticipated new orders under contract.
In the reported quarter, the Electronic Technologies Group's operating income increased 15% to $38.5 million, up from $33.6 million in the year ago corresponding period The increase principally reflected a favorable gross margin impact from increased net sales, as well as lower legal expenses and a more favorable product mix for certain of the Company's space, other electronics, aerospace and medical products. Electronic Technologies Group's operating margin improved to 28.0% in Q3 FY17, up from 24.7% in Q3 FY16.
Cash Matters
HEICO's cash flow provided by operating activities remained robust at $179.3 million, or 136% of net income, in the first nine months of FY17, up from $172.4 million in the first nine months of FY16.
The Company's cash flow provided by operating activities increased 17% to $81.6 million in Q3 FY17, up from $69.7 million in Q3 FY16. For FY17, HEICO is estimating cash flow provided by operating activities to approximate 150% of consolidated net income.
HEICO's total debt to shareholders' equity ratio was 36.3% as of July 31, 2017. The Company's net debt to shareholders' equity ratio was 32.2% as of July 31, 2017, with net debt of $385.3 million principally incurred to fund acquisitions in fiscal 2017 and 2016.
Outlook
Based on current economic visibility, HEICO raised its estimated consolidated FY17 growth in net sales to be 9% to 11% on a y-o-y basis and net income in the band of 14% to 16% compared to the earlier forecast of net sales of 8% to 10% and net income of 12% to 14%.
Additionally, HEICO (NYSE: HEI) reiterated its forecast for consolidated operating margin to approximate 20%, depreciation and amortization expense to approximate $65 million, and cash flow from operations to approximate $270 million. Furthermore, the Company now anticipates capital expenditures to approximate $31 million.
Stock Performance
At the closing bell on Monday, September 11, 2017, HEICO's stock rose slightly by 0.11%, ending the trading session at $85.49. A total volume of 189.13 thousand shares have exchanged hands. The Company's stock price skyrocketed 17.50% in the last three months, 23.84% in the past six months, and 58.06% in the previous twelve months. Moreover, the stock soared 38.51% since the start of the year. The stock is trading at a PE ratio of 41.76 and has a dividend yield of 0.19%. The stock currently has a market cap of $6.54 billion.
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