Heico Corporation's stock is experiencing a decline following the release of its fourth-quarter fiscal 2024 results, which revealed net sales that fell short of analyst expectations. Despite reporting a year-over-year sales increase of 8.3% to $1.01 billion, the figure missed the consensus estimate of $1.04 billion by 2.5%. The shortfall in sales was primarily attributed to lower-than-expected performance in the Electronic Technologies Group segment, where net sales decreased by 1.8% due to reduced sales of defense and electronics products. This segment's operating income also saw a decline of 5.3% year-over-year, further impacting investor sentiment.
The Flight Support Group, however, showed robust growth with a 15% increase in net sales, driven by strong organic growth and contributions from recent acquisitions. Despite these positive developments, the overall sales miss overshadowed the earnings beat, as Heico's earnings per share of 99 cents surpassed estimates by 2.1%. The market's focus on the sales miss rather than the earnings beat has led to a negative reaction from investors.
Heico's stock is currently trading at $246, down 5.31% from its previous close of $259.8 on December 17th.