logo
Share SHARE
FONT-SIZE Plus   Neg

Heico Q4 Profit Rises - Update

Heico Corp. (HEI) Tuesday reported a 29 percent increase in fourth-quarter profit, driven mainly by strong performance at flight support and electronic technologies businesses. Both earnings and revenues for the quarter came in ahead of Wall Street estimates.

Chief Executive Laurans Mendelson said, "The record quarterly results are primarily driven by record net sales and operating income within our Electronic Technologies Group and record net sales and continued strong operating income within our Flight Support Group."

Net sales of flight support group for the quarter advanced 4 percent to $149.7 million, riding on both organic and acquisition growth.

Electronic technologies group sales for the quarter jumped 45 percent to $94.4 million, largely on additional sales of $21.6 million from acquisitions and organic growth of about 11 percent.

Heico said sales for the quarter grew 16 percent to $242.4 million from $208.9 million last year. Ten analysts on a consensus estimated revenues of $237.38 million for the quarter.

Consolidated operating margins for the period improved to 18.8 percent from 17.9 percent last year.

Hollywood, Florida-headquartered Heico's fourth-quarter profit rose to $23.8 million or $0.45 per share from $18.5 million or $0.35 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.43 per share for the quarter. Analysts' estimates typically exclude special items.

Looking forward, Heico said it currently estimates fiscal year 2013 sales and profit to increase about 5 to 7 percent over 2012 levels, with consolidated operating margins approximating 18 percent. Analysts currently expect earnings of $1.82 per share on revenues of $968.24 million for fiscal year 2013.

Consistent with long-term growth goals, the company continues to target net income growth averaging 20% over the next one to three years including the effects of additional acquisitions.

HEI is currently trading at $42.47, up $1.16 or 2.81%, on the NYSE.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Apple and Hertz Global Holdings Inc. will work hand in hand to develop self driving vehicles. Bloomberg reported that Apple will hand over six Lexus SUVs to Hertz subsidiary Donlen fleet management unit for software testing. The leasing agreement between Apple and Hertz for a small fleet of vehicles was revealed by the California Department of Motor vehicles. The document listed Donlen as the le Apple Inc. has acquired German computer vision company SensoMotoric Instruments, a maker of eye-tracking glasses and systems, according to media reports. Financial terms of the deal are not known. The acquisition is expected to help Apple develop software that will be built into future versions of the iPhone or other new hardware. Western Digital Corp. and U.S. private equity firm KKR & Co. LP have resubmitted an offer for Toshiba Corp.'s flash memory chip unit, according to media reports on Tuesday. The new offer is said to be around 2 trillion yen. Western Digital's re-submission of a bid comes amid speculation that Toshiba might sign an agreement by Wednesday to sell the business to a Japanese-led consortium.
comments powered by Disqus
Follow RTT