Heico Corp (NYSE:HEI) stock fell 0.84% (As on August 27, 11:56:19 AM UTC-4, Source: Google Finance) after the company missed third-quarter revenue estimates. The aerospace business was the stronger of the two, with revenue up 15% year over year on strong demand for replacement parts. Outside of aerospace, revenue was down 1% from a year prior due to slower medical products and other electronics sales. Margins in both businesses held steady, up slightly from a year ago but down from the previous quarter.

HEI in the third quarter of FY 24 has reported the adjusted earnings per share of 97 cents, beating the analysts’ estimates for the adjusted earnings per share of 92 cents. The company had reported the adjusted revenue growth of 37 percent to $992.2 million in the third quarter of FY 24, missing the analysts’ estimates for revenue of $994.8 million, according to LSEG data. Operating income increased 45% to a record $216.4 million in the third quarter of fiscal 2024, up from $149.4 million in the third quarter of fiscal 2023. The Company’s consolidated operating margin improved to 21.8% in the third quarter of fiscal 2024, up from 20.7% in the third quarter of fiscal 2023. EBITDA increased 45% to $261.4 million in the third quarter of fiscal 2024, up from $179.8 million in the third quarter of fiscal 2023. The Flight Support Group’s net sales increased 68% to a record $681.6 million in the third quarter of fiscal 2024. The Electronic Technologies Group’s net sales were $322.1 million in the third quarter of fiscal 2024, as compared to $325.9 million in the third quarter of fiscal 2023.

Additionally, the total debt to net income attributable to HEICO ratio was 4.73x as of July 31, 2024, down from 6.14x as of October 31, 2023. Our net debt to EBITDA ratio was 2.11x as of July 31, 2024, down from 3.04x as of October 31, 2023. Cash flow provided by operating activities increased 47% to $214.0 million in the third quarter of fiscal 2024, up from $145.9 million in the third quarter of fiscal 2023. We continue to forecast strong cash flow from operations for fiscal 2024.

On the other hand, last week, the company announced the Flight Support Group acquired the Aerial Delivery and Descent Devices divisions of Capewell Aerial Systems. The purchase price of this acquisition was paid in cash, principally using proceeds from our revolving credit facility, and the company expects this acquisition to be accretive to the earnings within the year following the acquisition.