Investors interested in Aerospace stocks should always be looking to find the best-performing companies in the group. Is AeroVironment (AVAV) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.AeroVironment is a member of our Aerospace group, which includes 46 different companies and currently sits at #2 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the ind ...

koto_feja AeroVironment (NASDAQ:AVAV) is a rising powerhouse in the UAV (unmanned aerial vehicle) industry. The company has performed especially well over the past few years as a result of UAVs growing success on the battlefield. AeroVironment is in a great position to capitalize on the rise of UAV technologies given its robust product portfolio, strategic position in the defense industry, and its involvement in an escalating Ukrainian-Russian war. Innovative Product Portfolio AeroVironment is increasingly ...

AeroVironment (AVAV) closed the last trading session at $179.47, gaining 2% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $225.17 indicates a 25.5% upside potential.The average comprises six short-term price targets ranging from a low of $210 to a high of $245, with a standard deviation of $12.50. While the lowest estimate indicates an increase of 17% from the current price level ...

Investors had reason to cheer last week. But the valuation on this drone stock remains sky high.I've been following military drone manufacturer AeroVironment (AVAV -2.32%) for a very long time -- ever since it was just a newborn babe of a defense stock after its 2007 initial public offering (IPO), in fact. And I have to tell you that, over all this time, I've never seen AeroVironment win a defense contract as big as the one that it won last Tuesday: $1 billion.Well, $990 million to be exact.The Aug. 27 edit ...

mrdoomits/iStock via Getty Images Introduction On September 2, Seeking Alpha published an interesting article titled "SA Asks: Which defense stocks are most attractive right now?" I was humbled to be part of the panel. Here's a part of my answer (emphasis added): The most attractive defense companies are the ones that focus on at least two things: advanced defense projects and international demand. The defense environment is rapidly changing, fueled by the war in Ukraine, which shows that the “war o ...

Revenue and Income - Revenue for the three months ended July 27, 2024, was $189.5 million, an increase of 24.4% compared to $152.3 million for the same period in 2023[173]. - Revenue for the three months ended July 27, 2024, was $189.5 million, an increase of $37.2 million, or 24%, compared to $152.3 million for the same period in 2023[176]. - Net income for the three months ended July 27, 2024, was $21.2 million, slightly down from $21.9 million in the same period of 2023[173]. - The company reported an income from operations of $23.1 million for the three months ended July 27, 2024, compared to $26.4 million in the same period of 2023[173]. Expenses - Gross margin for the three months ended July 27, 2024, was $81.5 million, representing a gross margin percentage of 43.0%, up from $65.7 million and 43.1% in the prior year[173]. - Research and development expenses increased to $24.6 million for the three months ended July 27, 2024, compared to $15.5 million in the same period of 2023, reflecting a 59.2% increase[173]. - SG&A expenses for the three months ended July 27, 2024, were $33.8 million, or 18% of revenue, compared to $23.8 million, or 16% of revenue, for the same period in 2023[178]. - R&D expenses for the three months ended July 27, 2024, were $24.6 million, or 13% of revenue, compared to $15.5 million, or 10% of revenue, for the same period in 2023[179]. - Cost of sales for the three months ended July 27, 2024, was $108.0 million, an increase of $21.3 million, or 25%, compared to $86.7 million in the prior year[177]. Segment Performance - The company has three reportable segments: Uncrewed Systems (UxS), Loitering Munitions Systems (LMS), and MacCready Works (MW), with segment revenue and adjusted gross margin reported for each[173]. - UxS revenue for the three months ended July 27, 2024, was $120.0 million, representing an increase of $21.8 million, or 22%, compared to $98.2 million in the prior year[183]. - LMS revenue for the three months ended July 27, 2024, was $52.0 million, an increase of $21.1 million, or 68%, compared to $30.9 million for the same period in 2023[186]. - Product sales increased by $40.0 million, primarily driven by a $21.9 million increase from Switchblade products and a $19.1 million increase from UxS products[176]. Cash Flow and Liquidity - For the three months ended July 27, 2024, net cash provided by operating activities increased by $45.4 million to $28.4 million, compared to a net cash used of $(17.1) million for the same period in 2023[204]. - The net cash used in investing activities increased by $3.0 million to $6.6 million for the three months ended July 27, 2024, primarily due to increased property and equipment acquisitions[205]. - The company anticipates funding its normal recurring trade payables and ongoing R&D costs through existing working capital and cash provided by operating activities, which are expected to be sufficient for the next twelve months[197]. - The company’s liquidity needs include financing working capital, investing in capital expenditures, and supporting product development efforts[198]. Backlog and Contracts - Funded backlog as of July 27, 2024, was approximately $372.9 million, down from $400.2 million as of April 30, 2024[190]. - The company’s backlog is subject to large variations and does not guarantee future sales, as many contracts do not obligate the U.S. government to purchase goods or services[194]. - The company received $128 million of initial funding under a new IDIQ contract for LMS systems with a ceiling value of $990 million in August 2024[190]. Goodwill and Impairment - The MUAS reporting unit had a goodwill balance of $135.8 million as of July 27, 2024, following a goodwill impairment charge of $156.0 million recognized in the fiscal year ended April 30, 2023[168]. - The estimated fair value of the MUAS reporting unit does not substantially exceed its carrying value, indicating an increased risk of future impairment[168]. Tax and Interest - The effective income tax rate for the three months ended July 27, 2024, was 6.6%, compared to 5.7% for the same period in 2023[181]. - Interest expense decreased significantly to $239,000 for the three months ended July 27, 2024, from $2.0 million in the prior year[173]. - The current outstanding balance of the Credit Facilities is $17.5 million, which bears a variable interest rate, and the company is exposed to increased interest costs due to rising market rates[210]. Capital Contributions and Acquisitions - The company paid a total purchase price of $134.4 million for the Tomahawk acquisition, consisting of $109.8 million in stock and $24.2 million in cash on hand[202]. - The company has committed to make capital contributions totaling $20.0 million to a limited partnership fund, with $10.0 million remaining as of July 27, 2024[202]. Adjustments and Revenue Recognition - Favorable cumulative catch-up adjustments in revenue for the three months ended July 27, 2024, amounted to $0.8 million, while unfavorable adjustments were $0.3 million[161].

For the quarter ended July 2024, AeroVironment (AVAV) reported revenue of $189.48 million, up 24.4% over the same period last year. EPS came in at $0.89, compared to $1.00 in the year-ago quarter.The reported revenue represents a surprise of +2.84% over the Zacks Consensus Estimate of $184.26 million. With the consensus EPS estimate being $0.61, the EPS surprise was +45.90%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ...

Financial Data and Key Metrics Changes - Revenue for Q1 fiscal 2025 was $189.5 million, a 24% increase from $152.3 million in Q1 fiscal 2024, setting a new first-quarter revenue record for the company [7][20] - Adjusted gross margin for Q1 was 45%, consistent with the same period last year, while GAAP gross margins were 43% [24][25] - Adjusted EBITDA for Q1 was $37 million, flat compared to the previous year, as higher revenue and gross margin were offset by increased R&D and SG&A expenses [25][28] Business Segment Data and Key Metrics Changes - Uncrewed Systems (UxS) segment revenue was $120 million, a 22% increase from $98.2 million in the same quarter last year, driven by strong demand for the Puma franchise and JUMP 20 platforms [14][21] - Loitering Munition Systems (LMS) segment revenue reached $52 million, a 68% increase from $30.9 million in Q1 fiscal 2024, with significant contributions from Switchblade products [11][22] - MacCready Works segment revenue was $17.5 million, a decrease of 24% from $23.2 million in the same quarter last year, impacted by U.S. government delayed approvals [17][22] Market Data and Key Metrics Changes - The company is experiencing strong demand for its autonomous systems, particularly in the defense sector, with a robust pipeline of opportunities both domestically and internationally [10][31] - The U.S. Army's recent $1 billion IDIQ contract is expected to increase funded backlog in the coming quarters [8][30] - The company anticipates continued momentum in international demand for Switchblade and JUMP 20 solutions [31] Company Strategy and Development Direction - The company is focused on expanding production capacity to meet increasing demand, with plans to select an additional manufacturing location for Loitering Munition production [13][80] - The company aims to leverage its strong relationships with the U.S. Department of Defense and international customers to secure additional contracts and orders [10][76] - The strategic emphasis is on innovation in autonomous systems and enhancing manufacturing capabilities to support future growth [17][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance for fiscal 2025, supported by a healthy backlog and strong demand for autonomous solutions [30][31] - The company is optimistic about the potential for additional orders under the new IDIQ contract and expects to see progress payments that will improve cash flow [38][55] - Management highlighted the importance of international sales and the growing pipeline of opportunities, particularly for Switchblade products [72][76] Other Important Information - The company reported a total cash and investments amounting to $103 million at the end of Q1, an increase from $94.3 million at the end of the previous quarter [29] - Free cash flow during the quarter was $23 million, largely due to decreased inventories [29] Q&A Session Summary Question: How should we think about the task order timing and amounts under the IDIQ contract? - Management confirmed that the $1 billion IDIQ contract is expected to contribute to fiscal 2025 guidance, with initial task orders already booked [36][37] Question: Do you expect other releases or tranches during this fiscal year? - Management anticipates multiple additional Switchblade orders throughout the fiscal year, with a robust pipeline of opportunities [42][43] Question: What programs are associated with the $990 million Switchblade IDIQ? - The $990 million IDIQ contract is intended to fulfill various needs, including U.S. Army requirements and potential international sales [48][49] Question: Will the IDIQ contract help facilitate international sales? - Yes, the IDIQ contract is designed to accommodate international sales, improving the speed of the procurement process [74][76] Question: What is the current status of the FMS pipeline for Switchblade? - The company is engaged with over 50 countries, with a growing number of active customers in the pipeline [70][72]

AeroVironment (AVAV) came out with quarterly earnings of $0.89 per share, beating the Zacks Consensus Estimate of $0.61 per share. This compares to earnings of $1 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 45.90%. A quarter ago, it was expected that this maker of unmanned aircrafts would post earnings of $0.21 per share when it actually produced earnings of $0.43, delivering a surprise of 104.76%.Over the last four quarte ...

Slide 1 | © 2024 AeroVironment, Inc. First Quarter Fiscal Year 2025 Earnings Presentation September 4, 2024 Safe Harbor Statement Factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to, the impact of our ability to successfully close and integrate acquisitions into our operations and avoid disruptions from acquisition transactions that will harm our business; the recording of goodwill and other intangible assets as part of acquisition ...