Heico Delivers Strong Fourth Quarter and Sees Large Acquisition Pipeline in Fiscal 2022

Narrow-moat rated Heico reported solid fiscal fourth-quarter earnings as the aerospace recovery continues to benefit suppliers. Sales of $509 million and earnings per share of $0.62 beat FactSet consensus by 1.2% and 5.8%, respectively. We are increasing our fair value estimate by 6.9% to $93 per share as we increase our revenue assumptions due to management commentary on a strong acquisition pipeline for 2022 and due to the time value of money. We continue to see shares as expensive.