Fool Cheat Sheet: HEICO Earnings

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HEICO (NYS: HEI) reported earnings Dec. 15. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Oct. 31 (Q4), HEICO beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly, and earnings per share expanded significantly.

Margins shrank across the board.

Revenue details
HEICO booked revenue of $209 million. The 11 analysts polled by S&P Capital IQ predicted a top line of $188 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.44. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.43 per share. GAAP EPS of $0.44 for Q4 were 20% higher than the prior-year quarter's $0.37 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 35.6%, 40 basis points worse than the prior-year quarter. Operating margin was 17.9%, 50 basis points worse than the prior-year quarter. Net margin was 8.9%, 30 basis points worse than the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods.

Looking ahead
What does the future hold?

Next quarter's average estimate for revenue is $198 million. On the bottom line, the average EPS estimate is $0.45 (There are eight revenue estimates and five EPS estimates.)

For the full year ending 2012, the average estimate for revenue is $877 million. The average EPS estimate is $1.92. (There are three revenue estimates and eight EPS estimates.)

Investor sentiment
The stock has a three-star rating at Motley Fool CAPS, with 110 members out of 125 rating the stock outperform, and 15 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give HEICO a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on HEICO is outperform, with an average price target of $58.38.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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