HEICO Profit Up 25%; Lifts FY Outlook - Update

(RTTNews) - Aerospace and defense related products maker HEICO Corp. (HEI), Tuesday reported a 25 percent increase in third-quarter profit, led by growth at its flight support business. Both earnings and revenue topped Wall Street estimates. Looking ahead, the company raised its outlook for the full year.

Hollywood, Florida-based HEICO reported third-quarter net income of $29 million or $0.54 per share, compared with a profit of $23 million or $0.43 per share last year.

Results for the quarter included a 3 cent tax related benefit.

On average, 11 analysts polled by Thomson Reuters estimated earnings of $0.47 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the third quarter grew 18 percent to $267 million from $226 million a year ago. Analysts expected sales of $252.99 million for the quarter.

Flight Support Group sales increased 29 percent, while Electronic Technologies Group edged up 1 percent.

Results were somewhat offset by operating margin which shrunk to 18.1 percent from 18.8 percent in the prior year.

For 2013, HEICO expects net income to grow 15 to 16 percent on sales growth of 10 to 11 percent. The company earlier estimated net income to increase 11 to 13 percent on sales growth of 8 to 10 percent.

The company expects increases in airline capacity and maintenance spending to yield moderate growth within its Flight Support Group business in 2013.

HEICO shares closed Tuesday at $57.75, down $2.06 or 3.44%, on a volume of 247 thousand shares on the NYSE. In after hours, the stock gained $1.85 or 3.20%.