Heico Earnings: How To Trade It?

Forbes

02-06-2025

CHONGQING, CHINA - MAY 25: In this photo illustration, the logo of HEICO is displayed on a ... More smartphone screen, with the company's stylized branding visible in the background, on May 25, 2025, in Chongqing, China. (Photo illustration by)
Heico (NYSE:HEI), an aerospace and electronics firm, is set to announce its earnings on Tuesday, June 3, 2025. For traders focused on events, analyzing historical stock behavior surrounding earnings can be crucial, although the actual results will greatly affect the outcome. There are two primary strategies to think about if you intend to utilize historical patterns:
It's important to highlight that over the last five years, Heico has recorded negative one-day returns following earnings releases in 53% of cases. The median drop has been -3.1%, with a maximum one-day decline of -8.7%.
Analysts predict that Heico will report earnings of $1.12 per share, accompanied by sales of $1.11 billion. This would reflect an increase compared to the same quarter last year, when the company reported earnings of $0.97 per share on sales of $992 million. Fundamentally, Heico holds a current market capitalization of $42 billion. Over the past twelve months, the company produced $4.0 billion in revenue and was operationally profitable, achieving $871 million in operating profits and a net income of $567 million. However, if you're looking for potential growth with lower volatility compared to individual stocks, the Trefis High Quality portfolio offers an alternative — it has outperformed the S&P 500 and delivered returns exceeding 91% since its inception. Additionally, consider – Buy, Sell, or Hold HIMS Stock?
See earnings reaction history of all stocks
Here are some insights on one-day (1D) post-earnings returns:
Further details regarding observed 5-Day (5D), and 21-Day (21D) returns post earnings are summarized along with the statistics in the table below.
HEI 1D, 5D, and 21D Post-Earnings Return
A relatively lower-risk strategy (though not valuable if the correlation is weak) is to understand the relationship between short-term and medium-term returns post earnings, identify a pair that exhibits the highest correlation, and execute the relevant trade. For instance, if 1D and 5D demonstrate the strongest correlation, a trader could position themselves 'long' for the following 5 days if the 1D post-earnings return is positive. Below is some correlation data based on 5-year and 3-year (more recent) history. Note that the correlation 1D_5D refers to the correlation between 1D post-earnings returns and subsequent 5D returns.
HEI Correlation Between 1D, 5D and 21D Historical Returns
Occasionally, the performance of peers can affect the stock reaction following earnings. In fact, pricing may begin prior to the earnings being announced. Here is some historical data regarding the previous post-earnings performance of Heico stock compared to the stock performance of peers that released earnings just ahead of Heico. For a fair comparison, peer stock returns also represent post-earnings one-day (1D) returns.
HEI Correlation With Peer Earnings
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