Heico's (HEI) shares dropped early Wednesday after the aerospace and electronics company recorded higher fiscal fourth-quarter results year-on-year, but sales fell short of market estimates.

Net income came in at $0.99 a share for the three months through October, up from $0.74 the year before, the company said late Tuesday. The consensus among analysts on FactSet was for GAAP EPS of $0.98. Sales advanced to $1.01 billion from $936.4 million in the 2023 quarter, but was shy of the Street's view for $1.03 billion. The stock fell 6.1% in premarket activity.

The results were mainly driven by "exceptional operating performance" at its flight support group segment and "notable contributions" from its acquisitions in fiscal 2023 and 2024, Chief Executive Laurans Mendelson said in a statement. "Furthermore, these results reflect improved demand across all of the flight support group's product lines," he said.

Flight support group sales climbed 15% to $691.8 million. On an organic basis, sales grew 12% buoyed by a 13% jump in the company's aftermarket replacement parts product line, along with acquisition contributions, co-President Eric Mendelson said. However, organic revenue growth decelerated from the 15% increase recorded in the prior quarter, Truist Securities said in a client note.

Sales from the electronic technologies group decreased to $336.2 million from $342.5 million a year earlier, as higher sales from space products were weighed down by lower defense and other electronics sales. The segment is "still struggling from a growth and margin standpoint," Truist said.

Heico's consolidated operating margin improved to 21.6% from 20.2% in the prior-year period, but declined 20 basis points on a sequential basis, Truist said. Selling, general and administrative expenses edged higher to $175.2 million from nearly $175 million a year ago.

The company anticipates sales growth in both of its operating segments for fiscal 2025, primarily driven by organic gains and supported by robust demand for most of its products, Laurans Mendelson said. "Additionally, we plan to drive growth through our recently completed acquisitions while positioning ourselves to capitalize on potential opportunities from future acquisitions," the said.

The lack of a formal full-year outlook is likely to weigh on the stock with investors awaiting more color on the company's conference call on Wednesday, Truist said. The brokerage has a buy rating on Heico's shares with a price target of $282.