Heico Tops Q3 Earnings Estimates; Warns On Higher Material And Labor Costs
Portfolio Pulse from Lekha Gupta
Heico Corp reported a Q3 FY23 revenue increase of 27% Y/Y to $722.9 million, beating the consensus of $701.7 million. The company warned of potential higher material and labor costs due to inflationary pressures and supply chain disruptions. Heico recently closed the acquisition of Wencor Group for $2.05 billion, marking its largest-ever acquisition. The company anticipates net sales growth in both the FSG and ETG, driven by demand for the majority of its products.
August 29, 2023 | 9:57 am
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Heico Corp's Q3 FY23 revenue beat estimates, but the company warned of potential higher costs. The company recently acquired Wencor Group for $2.05 billion and anticipates net sales growth.
Heico Corp's revenue beat estimates, which is a positive signal for investors. However, the warning of potential higher costs due to inflation and supply chain disruptions could negatively impact the company's future earnings. The recent acquisition of Wencor Group could provide growth opportunities, but it also comes with integration risks.
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