HEICO (NYSE:HEI) shares fell more than 6% in after-hours trading despite reporting a revenue beat and earnings that matched expectations.
The aerospace and electronic company reported that its sales rose 27% year-over-year to $722.9 million, topping the Street estimate of $697.3 million, per Zacks Consensus Estimate.
It achieved record quarterly sales in both its Flight Support Group and Electronic Technologies Group.
“These results reflect 12% consolidated organic growth in our net sales principally arising from a continued strong demand for our commercial aerospace products and services and the contributions from our fiscal 2023 and 2022 acquisitions,” HEICO (NYSE:HEI) CEO Laurans Mendelson said in a statement.
Earnings per share of $0.74, up from $0.60 in the year-ago quarter, were in line with expectations.
However, the company’s debt to net income trailing 12 months ratio increased to 3.06x as of July 31, 2023, as compared to 0.83x as of October 31, 2022, which may have soured sentiment towards the stock.
HEICO (NYSE:HEI) shares were down 6.2% at US$157.40 shortly following the release of their 3Q results.
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