Analyst Note| Burkett Huey, CFA |
Narrow-moat rated Heico reported a solid first fiscal quarter of 2021. The year-over-year declines in the company’s flight support group as the pandemic continues to depress overall air traffic were partially offset by solid growth in the company’s electronic technologies group. Heico’s earnings per share of $0.51 beat FactSet consensus by 6.1% and the company posted a revenue decline of about 17.5% that was reasonably consistent with consensus estimates. We’re maintaining our $90 fair value estimate as we have marginally increased our near-term profitability assumptions and decreased our revenue assumptions.