Shares of HEICO Decline on Mixed Q3 Performance; Company Maintains Fiscal 2022 Outlook



In midday trading on Tuesday, HEICO (NYSE:HEI) stock fell as much as 2.3% to $152.30 after the aerospace and electronics firm disclosed erratic third-quarter results.

After losing more than 4% on Friday, the company’s shares were already trending lower. If they hold, losses today would extend HEI’s losing streak to three days.

After business hours on Monday, HEI reported Q3 GAAP EPS of $0.60, $0.06 below expectations. However, its $569.53M in revenue came in at $14.1 million ahead of projections.

In Q3 of fiscal 2022, net income rose by 7% to $82.5 million, or $.60 per diluted share, from the previous $76.9 million, or $.56 per diluted share, in Q3 of fiscal 2021. Net income for the first 9 months rose 17% to a record $254.5 million, or $1.85 per diluted share. This was up from $218.2 million, or $1.58 per diluted share, in the corresponding period of fiscal 2021. An increased effective income tax rate had a negative impact on net income in both the fiscal 2022 periods.

Since HEICO (NYSE:HEI) has been in business for more than 60 years, its products may be found on a wide range of industrial turbines, targeting systems, and electro-optical devices. They can also be found on big commercial aircraft, as well as regional, business, and military aircraft.

The commercial aerospace market’s upswing, according to HEI, has led to eight consecutive quarters of the sequential rise in net sales and operating income at its flight support group business. This quarter’s revenue was also a record for the company.

Due to the pandemic’s uncertainty, the business continued to postpone its fiscal 2022 net sales and profitability guidance, but it did state that it anticipates sustained growth in commercial aviation travel around the world.

Featured Image:  Megapixl @Rafaelhenriquepress

See Disclaimer Please

About the author: I'm a financial freelance writer keen on the latest market developments which i articulate with writing stock updates, press releases and investor news. As a person i live by the code of a sustainable human existence and a carbon neutral universe. When off work, i spend time reading non-fiction books, flying drones, and outdoor cycling.