HEICO CORP Earnings Per Share Disclosure
| Year ended October 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Numerator: | |||||||||||||||||
| Net income attributable to HEICO | $690,385 | $514,109 | $403,596 | ||||||||||||||
| Denominator: | |||||||||||||||||
| Weighted average common shares outstanding - basic | 139,048 | 138,455 | 137,185 | ||||||||||||||
| Effect of dilutive stock options | 1,723 | 1,743 | 1,720 | ||||||||||||||
| Weighted average common shares outstanding - diluted | 140,771 | 140,198 | 138,905 | ||||||||||||||
| Net income per share attributable to HEICO shareholders: | |||||||||||||||||
| Basic | $4.97 | $3.71 | $2.94 | ||||||||||||||
| Diluted | $4.90 | $3.67 | $2.91 | ||||||||||||||
| Anti-dilutive stock options excluded | 545 | 707 | 1,281 | ||||||||||||||
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.