Aerospace and defense related products maker Heico Corp. (HEI), Tuesday reported an increase in profit for the third quarter, reflecting strong growth across both flight support and electronic technologies businesses. Earnings for the quarter trumped Wall Street estimates, but revenues fell short of expectations.
Heico's third-quarter profit rose to $33.4 million or $0.49 per share from $28.9 million or $0.43 per share last year. On average, thirteen analysts polled by Thomson Reuters estimated earnings of $0.44 per share for the quarter. Analysts' estimates typically exclude special items.
Heico's third-quarter net sales grew 9 percent to $291.0 million from $267.1 million a year ago. Twelve analysts had a consensus revenue estimate of $296.26 million for the quarter.
Segment-wise, flight support sales increased 6 percent to $191.6 million, while electronic technologies sales grew 17 percent to $102.1 million from last year.
Operating margin dropped to 17.2 percent from 18.1 percent last year.
Commenting on the results, Chief Executive Laurans Mendelson said, "These results principally reflect record quarterly net sales within the Electronic Technologies Group, continued growth in net sales within the Flight Support Group and a year-over-year increase in our quarterly consolidated operating income."
For the fiscal year 2014, the company continues to see year-over-year revenue growth of 12 to 14 percent. Meanwhile, the company now sees net income growth of 14 to 16 percent, up from prior growth estimate of 12 to 14 percent.
HEI closed Tuesday's trading at $54.40, up $1.34 or 2.53%, on the NYSE. The stock further gained $0.97 or 1.78%, in the after-hours trade.
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