Heico stock jumped Tuesday after the defense contractor topped Q3 estimates late Monday with record results.
Florida-based Heico reported a 30% increase in earnings to $1.26 per share. Sales rose 16% to a record $1.147 billion.
FactSet analysts expected earnings of $1.13 per share on $1.115 billion in revenue.
Flight Support Group revenue jumped 18% to $802.7 million, compared with views for $779 million.
Electronic Technologies revenue climbed 10% to $355.9 million. Analysts expected $348 million in revenue for the group.
"We remain confident in achieving net sales growth across both the Flight Support Group and Electronic Technologies Group segments, driven by continued organic demand for most of our projects," Executive Chairman Laurans Mendelson said in the release. The company expects to accelerate growth through recently completed acquisitions and by capitalizing on acquisition opportunities."
Heico provides components, manufacturing and repair services for the military and commercial aerospace markets. Operations are divided into the Flight Support Group, which focuses on aerospace parts and repair services, and Electronic Technologies, which offers various sensors, amplifiers, semiconductors and other components and technology. Heico supports weapons systems for the C-130, F-16, KC-10 and the E-4B, which serves as "doomsday" aircraft for the U.S. president.
Heico also supports engines made by the likes of GE Aerospace and RTX's Pratt & Whitney division.
The company in July acquired Gables Engineering for an undisclosed sum. Gables specializes in advanced avionics controls, including navigation, audio and communication equipment.
Heico Stock
Heico stock popped 8.8% Tuesday to rebound above its 50-day line. Shares declined 1.4% Monday ahead of results, closing at 305.34.
HEI stock on Aug. 4 broke out above a 328.63 buy point for a flat base to reach a record high of 338.92 on Aug. 5. However, shares have fallen more than 7% below the entry, which triggered the stop-loss rule.
Despite the recent pullback, Heico has rallied more than 39% this year.
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