Fannie Mae, Freddie Mac shares tumble after conservatorship comments
On Friday, RBC Capital Markets analyst Ken Herbert increased the price target for HEICO (NYSE:HEI) shares to $285 from $255, while reiterating an Outperform rating on the stock. The adjustment follows the company’s release of its robust fiscal first-quarter 2025 results. According to InvestingPro data, HEICO’s stock has surged 14.8% in the past week, though current valuations suggest the stock is trading above its Fair Value.
HEICO reported earnings per share (EPS) of $1.20, surpassing the consensus estimate of $0.92 and RBC Capital’s own projection of $0.91. The company’s revenue reached $1.03 billion, exceeding expectations by 5%. This performance was driven by a 13% organic growth in its Flight Support Group (FSG) and an 11% increase in its Electronic Technologies Group (ETG). The strong results align with HEICO’s impressive 23% year-over-year revenue growth and "GREAT" financial health score from InvestingPro, which offers 14 additional key insights about the company.
The strong profitability in both segments contributed to an adjusted EBITDA of $274 million for the quarter, which was 9% higher than the consensus estimate. Herbert’s commentary highlighted the significance of these results, noting that the strong margins and organic growth underscored the strength of HEICO’s business model and the positive outlook for the commercial aerospace manufacturing (AM) sector.
Following a period of recent weakness in HEICO’s stock, the first-quarter results have reinforced confidence in the company’s business model and future prospects. The analyst’s decision to maintain an Outperform rating and raise the price target to $285 reflects this optimism.
In other recent news, Heico Corporation reported its Q1 FY2025 earnings, surpassing expectations with an earnings per share (EPS) of $1.20 against the forecasted $0.9449. The company’s revenue reached $1.03 billion, exceeding the anticipated $977.7 million. This performance was driven by strong growth in both the Flight Support Group and Electronic Technologies Group. Heico’s net income increased by 46% to $168 million, and cash flow from operations rose 82% to $203 million. The company’s EBITDA also saw a 22% increase, reaching $273.9 million. Heico continues to focus on strategic acquisitions, having completed several in the first quarter, including a 90% interest in Millennium International. Analysts have noted Heico’s strong operational execution and market demand, reflecting positively on the company’s strategic direction.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.