) hit a 52-week high of $58.53 during yesterday's trading
session. However, the stock closed at $58.00 reflecting a solid
year-over-year increase of 75.5%. The average trading volume for
the last three months aggregated 142,639 shares.
HEICO Corporation delivered positive earnings surprises in
three of the last four quarters with an average beat of 4.0%.
This Zacks Rank #2 (Buy) stock has a market cap of $3.7 billion
and long-term earnings growth expectations of 13.5%.
HEICO Corporation has been witnessing rising earnings
estimates on the back of strong fiscal third-quarter 2013
results, strategic acquisitions, expanded credit facility and
On Aug 27, HEICO Corporation reported fiscal third-quarter
results. Non-GAAP earnings per share came in at 48 cents, beating
year-ago earnings of 43 cents by 11.6%. Earnings were primarily
aided by solid top-line growth of 18.0%, driven by growth across
In addition, the company completed the strategic acquisition
of Lucix Corporation for an undisclosed sum. This acquisition
expands HEICO Corporation's satellite and space component
operations, and is accretive to first-quarter 2014 earnings.
Subsequent to the quarter-end, HEICO Corporation completed the
pre-announced 5-for-4 stock split. This stock split primarily
reflects the company's optimism related to long-term growth and
financial outlook. Over the past 13 years, HEICO Corporation has
consistently delivered strong returns and value to its
shareholders. Due to the impact of prior increases in cash
dividends, earlier stock splits and stock dividends, one share of
HEICO Corporation worth $8.38 in 1990 is valued at approximately
$900 today, an increase of 107 times from the 1990 value. It has
also experienced a compound annual growth rate of 23%.
HEICO Corporation has also expanded its revolving credit
facility to $1 billion on an aggregate basis besides extending
its maturity till the end of 2018. This revised credit facility
is expected to increase the company's financial flexibility to
support its capital structure and operations across the
Further, driven by management's confidence in the company's
business, the board intends to increase the regular
semi-annual cash dividend to 6 cents per share, representing a 7%
increase over the prior semi-annual tally of 60 cents, as
adjusted for the 5-for-4 stock splits.
Over the last 7 days, the earnings estimates did not show any
upward or downward revision for 2013. Although there is a lacuna
of estimate revisions, we envision an uptrend for the stock
backed by its strong growth potential.
Other Stocks to Consider
Other companies in the aerospace and defense sector worth
considering at the moment include
Alliant Techsystems Inc.
Teledyne Technologies Inc.
). While Alliant Technologies has a Zacks Rank #1 (Strong Buy),
Hexcel and Teledyne both carry a Zacks Rank #2 (Buy).
ALLIANT TECHSYS (ATK): Free Stock Analysis
HEICO CORP (HEI): Free Stock Analysis Report
HEXCEL CORP (HXL): Free Stock Analysis Report
TELEDYNE TECH (TDY): Free Stock Analysis
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