Fenimore Asset Management, Inc. on HEICO Corporation
Thesis
HEICO continued growing revenue and reported profit growth of roughly 33% even as shares declined with aerospace and defense peers. Fenimore regards the company fundamentals and broader industry outlook as intact. The position reflects confidence that rising fuel costs and airlines earnings concerns will not permanently derail growth.
“we believe the firm’s fundamentals are intact as is the industry.”
Key risks
- Higher oil prices may hurt airline profitability
- Airline demand could weaken
- Aerospace and defense sector pressure may persist