Heico Corp (NYSE:HEI) stock fell 9.58% (As on December 18, 11:17:28 AM UTC-4, Source: Google Finance) after the company reported fourth quarter earnings that beat expectations, but revenue fell short of analyst estimates. Flight Support Group net sales surged 15% year over year to $691.8 million. This rise was driven by strong organic growth of 12%. The segment’s operating income soared 34.8% year over year to $154.5 million. Electronic Technologies Group’s net sales decreased 1.8% to $336.2 million due to lower net sales of defense and electronics products. The segment’s operating income declined 5.3% year over year to $81.8 million. As of Oct. 31, 2024, HEI’s cash and cash equivalents totaled $162.1 million compared with $171 million as of Oct. 31, 2023. Cash flow provided by operating activities was $672.4 million during fiscal 2024, reflecting a 49.8% rise from the prior-year period’s level. HEICO reported a long-term debt (net of current maturities) of $2.23 billion as of Oct. 31, 2024, down from $2.46 billion as of Oct. 31, 2023.

HEI in the fourth quarter of FY 24 has reported the adjusted earnings per share of 99 cents, beating the analysts’ estimates for the adjusted earnings per share of 97 cents, according to the Zacks Consensus Estimate. For fiscal 2024, the company reported adjusted earnings of $3.67 per share, which indicates growth of 26.1% from $2.91 at the end of fiscal 2023.The company had reported the adjusted revenue growth of 8.3 percent to $1.01 billion in the fourth quarter of FY 24, missing the analysts’ estimates for revenue of $1.04 billion. The year-over-year upside was driven by record operating results from the Flight Support Group segment as well as strong contributions from HEI’s fiscal 2023 and 2024 acquisitions. HEICO’s cost of sales increased 8.4% year over year to $620 million. The company’s selling, general and administrative expenses rose 0.01% to $175.3 million. Interest expenses declined 18.5% to $35.4 million from $43.4 million in the prior-year quarter.

Additionally, the company has declared a semiannual cash dividend of $0.11 per share for both its Class A Common Stock and Common Stock. The dividend is set to be paid on January 17, 2025, to shareholders on record as of January 3, 2025.

Looking ahead to fiscal 2025, Heico anticipates net sales growth in both operating segments, driven primarily by organic growth supported by strong demand across most product lines.