Heico Corp. (HEI: Quote) 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.
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by RTT Staff Writer
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