Heico Shares Gain as Fourth-Quarter Results Beat Expectations on Aerospace Strength

Core Viewpoint - Heico Corporation reported strong fourth-quarter earnings that exceeded analyst expectations, driven by robust demand in commercial aerospace markets, resulting in a more than 4% increase in shares intra-day on Friday [1]. Financial Performance - Adjusted earnings for the fiscal fourth quarter were $1.33 per diluted share, surpassing analyst estimates of $1.21 [2]. - Revenue increased by 19% year over year to $1.21 billion, exceeding the consensus estimate of $1.17 billion [2]. Segment Performance - The Flight Support Group, which provides aftermarket parts and services to airlines, led growth with a 21% increase in sales to $834.4 million, including 16% organic growth, marking the twenty-first consecutive quarter of sequential sales growth [3]. - The Electronic Technologies Group, serving defense, space, and medical markets, reported a 14% increase in sales to $384.8 million, with 7% organic growth driven by higher demand for defense and aerospace products [4]. Operating Efficiency - Operating margins improved to 23.1% during the quarter, compared to 21.6% a year earlier, reflecting stronger gross margins and enhanced operating efficiencies [4].