What Happened?
Shares of aerospace and defense company HEICO (NSYE:HEI) jumped 4.1% in the morning session after the company reported strong third-quarter results that surpassed analyst expectations for both revenue and profit.
The aerospace and defense component specialist announced that net sales rose 19.3% year over year to $1.21 billion, beating consensus estimates. The company's earnings were also impressive, with its GAAP profit of $1.33 per share beating the analyst forecast of $1.22. The strong performance was attributed to robust demand in its commercial aviation and electronic technologies businesses. Additionally, HEICO's operating margin improved to 23.1% from 21.6% in the same quarter last year, signaling greater efficiency and profitability from its sales.
After the initial pop the shares cooled down to $323.08, up 4.2% from previous close.
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What Is The Market Telling Us
HEICO’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 10 months ago when the stock gained 14.1% on the news that the company reported strong fourth-quarter results, with revenue, EBITDA, and EPS all surpassing expectations by significant margins. Sales grew 15% year-on-year, driven by strong organic demand in both the Flight Support and Electronic Technologies segments, along with contributions from recent acquisitions. Overall, this was a solid performance for the quarter.
HEICO is up 36.2% since the beginning of the year, and at $323.08 per share, it is trading close to its 52-week high of $337.56 from August 2025. Investors who bought $1,000 worth of HEICO’s shares 5 years ago would now be looking at an investment worth $2,454.
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