Sign in

    Bert Subin • Stifel

    Bert Subin's questions to HEICO Corp (HEI) leadership

    Bert Subin's questions to HEICO Corp (HEI) leadership • Q3 2024

    Question

    Bert Subin inquired about the mix of volume versus price in the FSG's aftermarket parts growth, the potential for market share gains in a slowdown, and the outlook for the Electronic Technologies Group (ETG) in fiscal 2025.

    Answer

    Eric Mendelson, Co-President, stated that the 17% growth in the parts business was predominantly driven by volume, not price. He affirmed that in a slowdown, HEICO typically gains market share as customers seek cost savings. Victor Mendelson, Co-President, expressed optimism for stronger growth in ETG in fiscal 2025, citing strong backlogs and order rates, particularly as non-aerospace and defense markets appear to be bottoming out.

    Ask Fintool Equity Research AI

    Bert Subin's questions to Maximus Inc (MMS) leadership

    Bert Subin's questions to Maximus Inc (MMS) leadership • Q3 2024

    Question

    Bert Subin of Stifel asked for detailed commentary on the U.S. Federal segment, particularly the VA business, questioning its near-term outlook amid rebids and funding issues, and whether automation could offset margin headwinds in FY25. He also inquired about the confidence in the book-to-bill ratio improving and sought clarity on the 'at least 10%' margin floor for FY25.

    Answer

    CEO Bruce L. Caswell confirmed the VA rebid timeline and expressed confidence that bipartisan support would resolve any near-term funding issues. He expects VA volumes to remain elevated through FY25, with technology benefits being back-end loaded. On the book-to-bill ratio, Caswell attributed the current low figure to procurement delays and a lower volume of rebids, not win rates, and expressed confidence it would normalize with upcoming opportunities and internal growth initiatives. CFO David Mutryn clarified that the strong Q3 Federal margin was partly due to a favorable revenue mix and volume pull-forward. He explained the 'at least 10%' margin guidance for FY25 was to provide assurance against a dramatic drop as highly accretive, non-recurring revenue moderates.

    Ask Fintool Equity Research AI

    Bert Subin's questions to V2X Inc (VVX) leadership

    Bert Subin's questions to V2X Inc (VVX) leadership • Q2 2024

    Question

    Bert Subin questioned the drivers of sequential margin progression given Middle East growth, sought more color on the new readiness contract, asked for clarification on interest expense guidance, and inquired about the top priority for the company's optimization phase.

    Answer

    SVP and CFO Shawn Mural clarified that second-half margin improvement will be driven by contract actions and productivity gains, offsetting the mix from lower-margin growth. He confirmed the readiness contract is a significant single-award win but could not name it. President and CEO Jeremy Wensinger identified the top priority for optimization as execution, focusing on giving local teams better data and tools to improve performance and better leverage company-wide capabilities for new business pursuits.

    Ask Fintool Equity Research AI