Heico Q2 Profit Rises - Update

(RTTNews) - Aerospace and defense related products maker Heico Corp. (HEI), Tuesday reported an increase in profit for the second quarter, reflecting strong growth at its flight support business, with both earnings and revenues topping Wall Street estimates.

Heico's second-quarter profit rose to $28.4 million or $0.42 per share from $23.7 million or $0.35 per share last year. On average, thirteen analysts polled by Thomson Reuters estimated earnings of $0.40 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales grew 19 percent to $282.2 million from $237.7 million a year ago. Twelve analysts had consensus revenue estimate of $275.41 million for the quarter.

Segment-wise, flight support sales increased 28 percent to $194.9 million, while electronic technologies sales grew 7 percent to $89.7 million from last year.

Operating margin dropped to 17.4 percent from 18.8 percent last year.

Commenting on the results, Chief Executive Laurans Mendelson said, "We are pleased to report another outstanding quarter resulting from record net sales and operating income within the Flight Support Group and continued year-over- year growth in net sales within the Electronic Technologies Group."

For the fiscal year 2014, the company continues to see year-over-year revenue growth of 12 to 14 percent. Meanwhile, the company now sees net income growth of 12 to 14 percent, up from prior growth estimate of 10 to 12 percent.

HEI closed Tuesday's trading at $54.19, down $1.28 or 2.31%, on the NYSE.