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AeroVironment’s (NASDAQ:AVAV) stock fell 6.6% in extended trading Wednesday after the maker of military drones and unmanned vehicles reported a steep decline in earnings while still beating the average estimate among Wall Street analysts.
Earnings adjusted for one-item items fell 57% from a year earlier to $0.43 a share in the three-month period through April 30. The consensus estimate was $0.21 a share.
Revenue rose 5.9% from a year earlier to about $197 million in the company’s fiscal fourth quarter, beating the consensus estimate of $189 million.
AeroVironment’s (AVAV) funded backlog fell to $400.2 million by the end of April from $424.1 million a year earlier.
Management forecast that revenue will be in a range of $790 million to $820 million in 2025, compared with the consensus estimate of $809.7 million. The company also estimated that adjusted earnings will be $3.18 to $3.49 a share, compared with the consensus forecast of $3.31 a share.
AeroVironment’s (AVAV) stock more than doubled in price during the 12-month period through June 25, making it a standout among defense stocks. Its product line of drones and loitering munitions has been deployed throughout the world, and the war in Ukraine has stood out for the widespread use of drones by troops.
In an interview with Seeking Alpha on April 24, AeroVironment Chief Executive Wahid Nawabi said the war in Ukraine has provided key insights into how infantry troops can best deploy drones on the battlefield. He said drones in many ways are more significant than missile-defense launchers such as the High Mobility Artillery Rocket System, or HIMARS, that is credited with helping to halt the Russian invasion.
“Everyone says, ‘we love HIMARS,’ but we’re hearing back from soldiers that they really see the Switchblade [a loitering munition] as the game changer,” Nawabi said.
Source: AeroVironment
Source: AeroVironment
