HEICO Corporation (NYSE:HEI) defied analyst predictions to release its quarterly results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 4.9% to hit US$1.4b. HEICO reported statutory earnings per share (EPS) US$1.67, which was a notable 11% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Taking into account the latest results, the most recent consensus for HEICO from 20 analysts is for revenues of US$5.93b in 2027. If met, it would imply a meaningful 14% increase on its revenue over the past 12 months. Per-share earnings are expected to grow 16% to US$7.04. In the lead-up to this report, the analysts had been modelling revenues of US$5.82b and earnings per share (EPS) of US$6.88 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at US$395, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values HEICO at US$472 per share, while the most bearish prices it at US$290. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the HEICO's past performance and to peers in the same industry. It's pretty clear that there is an expectation that HEICO's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 11% growth on an annualised basis. This is compared to a historical growth rate of 22% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 9.2% annually. Factoring in the forecast slowdown in growth, it looks like HEICO is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around HEICO's earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on HEICO. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for HEICO going out to 2028, and you can see them free on our platform here..

Don't forget that there may still be risks.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.