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Key Takeaways
- Aircraft parts and electronics supplier Heico posted higher revenue despite a drop in sales at its Electronic Technologies Group unit.
- Fiscal third-quarter sales at Heico’s Flight Support unit set a record high.
- Investing guru Warren Buffett is a fan of Heico, adding the stock to his Berkshire Hathaway portfolio in the second quarter.
Shares of Warren Buffett-backed Heico (HEI) edged higher Tuesday after the aircraft parts and electronics supplier posted better-than-expected third-quarter profit despite declining Electronic Technologies Group sales.
Heico reported that fiscal 2024 third-quarter revenue rose 37% year-over-year to a record $992.2 million, a tick below analysts’ consensus estimate of $992.7 million compiled by Visible Alpha. Earnings per share (EPS) of 97 cents came in above forecasts of 91 cents.
Sales in the Electronic Technologies Group declined 1% to $322.1 million. The company said the drop “principally reflects lower other electronics and medical products net sales.” At the same time, Heico’s Flight Support segment sales jumped 68% to an all-time high of $681.6 million.
Acquisitions Credited With Boosting Results
Heico Chief Executive Officer (CEO) Laurans Mendelson said that along with gains in the Flight Support group, the company’s latest results were boosted by “strong contributions from our fiscal 2023 and 2024 acquisitions.”
Heico shares, which hit a record-high $258.84 on Aug. 15, edged higher to $246.70 as of 1:15 p.m. ET Tuesday. They are up about 38% this year.