Shares Of Heico Fall After 3Q Earnings Drop

HARTFORD, Conn. (AP) — Shares of Heico Corp. fell Thursday, a day after the aerospace and defense company said third-quarter earnings fell 13 percent due to the continuing drop in passenger and cargo air traffic.

Stifel Nicolaus analyst Stephen Levenson said the Hollywood, Fla., company did well under the circumstances.

"Given the turmoil in the air travel business, destocking by other participants in the supply chain and the overall economic slowdown, we think investors should consider the results to be satisfactory and a sign of solid efforts from management," he said in a client note Thursday.

He maintained a "Hold" rating on Heico's stock, but slightly raised his fiscal 2009 earnings estimate $1.63 per share from $1.61.

Analysts surveyed by Thomson Reuters expect earnings to be $1.65 per share.

Levenson said he remains conservative because "management's comments were a bit less optimistic" than at the end of the second quarter of fiscal 2009.

The company earned $11.1 million, or 41 cents per share, compared with $12.8 million, or 47 cents per share, a year ago.

Revenue fell to $134.1 million, from $147.3 million, a year earlier.

Analysts surveyed by Thomson Reuters forecast a profit of 41 cents per share on $134.3 million in sales.

Shares fell 95 cents, or 2.5 percent, to $36.42 in afternoon trading.