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Key Takeaways
- Aircraft parts and electronics supplier Heico posted higher revenue consideration a drop in sales at its Electronic Technologies Group unit.
- Fiscal third-quarter sales at Heico’s Flight Support component set a record high.
- Investing guru Warren Buffett is a fan of Heico, adding the stock to his Berkshire Hathaway portfolio in the advance quarter.
Shares of Warren Buffett-backed Heico (HEI) edged higher Tuesday after the aircraft parts and electronics supplier positioned better-than-expected third-quarter profit despite declining Electronic Technologies Group sales.
Heico reported that budgetary 2024 third-quarter revenue rose 37% year-over-year to a record $992.2 million, a tick below analysts’ consensus gauge 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 Collect declined 1% to $322.1 million. The company said the drop “principally reflects lower other electronics and medical produces net sales.” At the same time, Heico’s Flight Support segment sales jumped 68% to an all-time high of $681.6 million.
Acquisitions Acknowledged With Boosting Results
Heico Chief Executive Officer (CEO) Laurans Mendelson said that along with collects in the Flight Support group, the company’s latest results were boosted by “strong contributions from our fiscal 2023 and 2024 properties.”
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 anent 38% this year.
Read the original article on Investopedia.