AeroVironment Reports Q2 Miss, Provides Guidance

AeroVironment, Inc. (NASDAQ:AVAV) is a prominent player in the defense and aerospace industry, known for its innovative unmanned aircraft systems and tactical missile systems. The company is set to release its third-quarter fiscal 2025 earnings on March 4, 2025. Analysts predict earnings per share (EPS) of $0.58 and revenue of approximately $206.4 million for this period.

AeroVironment has a history of exceeding earnings expectations, with an average earnings surprise of 54.69% over the past four quarters. Despite a projected 7.9% decline in EPS compared to the same period last year, the company is expected to report a 1.4% increase in revenue, reaching $189.25 million. This growth is largely driven by the strong performance of its Loitering Munitions Systems (LMS) and Medium Weight (MW) units.

The LMS segment, in particular, is benefiting from increased global demand due to ongoing conflicts and the U.S. Department of Defense's need for resupply. The Zacks Consensus Estimate for this segment's quarterly revenues is approximately $92.3 million. This demand is likely to have a positive impact on AeroVironment's overall revenue growth, despite the challenges posed by higher marketing expenses.

AeroVironment's financial metrics reflect its strong market position. The company has a price-to-earnings (P/E) ratio of approximately 82.14, indicating high investor confidence. Its price-to-sales ratio is about 5.29, and the enterprise value to sales ratio is approximately 5.24, both suggesting a solid valuation relative to sales. The low debt-to-equity ratio of 0.041 and a current ratio of 4.61 highlight the company's strong financial health and ability to cover short-term liabilities.

AeroVironment (NASDAQ:AVAV) stock surged more than 5% intra-day today after the company reported its Q4 earnings results, with revenue of $186 million beating the Street estimate of $164.97 million. EPS came in at $0.99, compared to the Street estimate of $1.02.

The company provided its full 2024 year outlook, anticipating EPS to be in the range of $2.30-$2.60, compared to the Street estimate of $2.04, and revenue in the range of $630-$660 million, compared to the Street estimate of $600 million.

CEO Wahid Nawabi expressed confidence in AeroVironment's prospects for strong growth in fiscal 2024, citing the company's record-setting revenue and backlog. Although AeroVironment was not chosen to move forward with increment 2 of FTUAS (Future Tactical Unmanned Aircraft Systems), Nawabi emphasized that the company's current position bodes well for its future. He stated that AeroVironment has never been in better shape in terms of its future outlook than it is today.

AeroVironment (NASDAQ:AVAV) stock surged more than 5% intra-day today after the company reported its Q4 earnings results, with revenue of $186 million beating the Street estimate of $164.97 million. EPS came in at $0.99, compared to the Street estimate of $1.02.

The company provided its full 2024 year outlook, anticipating EPS to be in the range of $2.30-$2.60, compared to the Street estimate of $2.04, and revenue in the range of $630-$660 million, compared to the Street estimate of $600 million.

CEO Wahid Nawabi expressed confidence in AeroVironment's prospects for strong growth in fiscal 2024, citing the company's record-setting revenue and backlog. Although AeroVironment was not chosen to move forward with increment 2 of FTUAS (Future Tactical Unmanned Aircraft Systems), Nawabi emphasized that the company's current position bodes well for its future. He stated that AeroVironment has never been in better shape in terms of its future outlook than it is today.

AeroVironment (NASDAQ:AVAV) reported its Q2 results, with EPS of $0.00 coming in worse than the Street estimate of $0.20. Revenue was $111.6 million (down 9% year-over-year), missing the Street estimate of $113.43 million.

Top-line results were impacted by lower product sales and service revenue primarily due to decreases in SUAS (Small unmanned aircraft systems). The company highlighted $197 million in Q2/23 bookings, with a total backlog approaching approximately $400 million.

The company expects full-year EPS to be in the range of $1.26-$1.58, compared to the Street estimate of $1.57. Revenue is expected in the range of $505-525 million, compared to the Street estimate of $510.24 million.

AeroVironment, Inc. (NASDAQ:AVAV) shares closed more than 4% lower on Wednesday following the company’s reported Q4 results, with EPS of $0.30 coming in worse than the Street estimate of $0.39. Revenue was $132.6 million, compared to the Street estimate of $135.3 million.

The company provided a relatively soft 2023 outlook, which highlighted continued supply chain disruptions as a significant revenue headwind, especially in its TMS business. For the full year, the company expects EPS to be in the range of $1.35-$1.65, compared to the Street estimate of $1.75, and revenue in the range of $490-520 million, compared to the Street estimate of $513 million.

According to the analysts at RBC Capital, the demand outlook across the company's portfolio is strong, with now over 20 countries approved for the Switchblade. The analysts continue to believe the company has seen a positive inflection in the demand for its small UAS and TMS products, and maintain their outperform rating and $100 price target.

AeroVironment, Inc. (NASDAQ:AVAV) shares recovered on Wednesday, trading more than 8% higher in the afternoon, following the sell-off yesterday (its biggest selloff in 12 years), which was followed by the company’s reported Q3 results.

Although the Q3 results were strong, with both EPS and revenues of $0.78 and $122.01 million beating the consensus estimates, the company’s 2022 outlook was disappointing.

Much of the revenue growth was due to the 2021 acquisitions of Arcturus (February 2021) and Telerob (May 2021).

The company materially lowered its 2022 outlook, expecting revenue of $450 million, down from prior guidance of $570 million. The EPS estimates were lowered to $1.23 - $1.37. The magnitude of the reduction is surprising considering that the company had visibility on around 66% of its prior full year $570 million revenue guidance exiting fiscal Q1.