Comment
0
Tweet
0
Print
RSS Feeds

Why HEICO Corporation Shares Bounced

Friday - 5/24/2013, 2:58am  ET

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of HEICO Corporation jumped as much as 12% today after beating estimates in its earnings report, and raising its guidance.

So what: The aerospace manufacturer delivered a 24% increase in net income, good for an EPS of $0.44, or $0.04 above the analyst consensus. Revenues grew 10%, to $237.7 million, cruising past estimates at $229.2 million. CEO Laurans Mendelson credited the strong quarter on "organic growth and the successful integration of our fiscal 2012 acquisitions."  Heico also posted guidance above estimates

Now what: The strong results for the FAA-approved aerospace supplier came in spite of recent government cutbacks from sequestration, demonstrating Heico's strength going forward. With a P/E of 30 the price looks a little high, but Heico seems well positioned for stable earnings and revenue growth.

Want more info on HEICO Corporation? Add the company to your Watchlist by clicking right here.

This article was originally published as Why HEICO Corporation Shares Bouncedon Fool.com

Copyright © 2009 The Motley Fool, LLC. All rights reserved.