In its upcoming report, AeroVironment (AVAV) is predicted by Wall Street analysts to post quarterly earnings of $0.32 per share, reflecting a decline of 3% compared to the same period last year. Revenues are forecasted to be $168.72 million, representing a year-over-year increase of 25.5%.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Before a company ...

Valuable mergers and acquisitions are projected to improve economies of scale for the aerospace-defense equipment stocks. However, persistent supply-chain issues may negatively impact the operating results of the aerospace-defense equipment stocks. Nevertheless, solid air passenger demand should benefit the industry players. Going ahead, revenue passenger kilometers (RPKs) are estimated to grow 9.8% in 2024 from the 2023 level. This, in turn, bolsters the growth prospects of aerospace-defense equipment stoc ...

ARLINGTON, Va.--(BUSINESS WIRE)--AeroVironment, Inc. (NASDAQ: AVAV) will issue financial results for the company's third quarter ended January 27 after the market closes on Monday, March 4. Management will host a conference call and live audio webcast to discuss the results at 4:30 p.m. Eastern Time. Hosting the call to review results for the third quarter will be Wahid Nawabi, AeroVironment’s chairman, president and chief executive officer; Kevin P. McDonnell, senior vice president and chief financial off ...

ARLINGTON, Va.--(BUSINESS WIRE)--AeroVironment’s PS2500 battery is now approved for use in the Puma™ 3 AE unmanned aircraft system (UAS). The optional PS2500 battery allows operators to achieve extended endurance of up to three hours of flight time. The increased endurance provides operators with greater mission flexibility and time on station across land and maritime operations. “The new PS2500 battery offers both new and current Puma customers the opportunity to dramatically expand the duration of thei ...

ARLINGTON, Va.--(BUSINESS WIRE)--AeroVironment’s Tomahawk product line has been awarded a $2.67 million contract from Advanced Technology International (ATI) that will be managed by the U.S. Marine Corps Warfighting Lab (MCWL). This contract supports the Marine Corps’ Force Design 2030 and other Department of Defense (DoD) initiatives of enhancing lethality and mission success across the warfighting functions. Under the contract, AeroVironment will deliver prototype Tomahawk Grip Tab Active (Grip TA) con ...

James Rolevink AeroVironment (NASDAQ:AVAV) continues to thrive in the rapidly evolving aerospace and defense industries. The company, known for being one of the pioneers in unmanned aircraft systems (UAS) and tactical missile systems, continues to be at the forefront of an industry that has become increasingly vital to the military and commercial sectors. Aerovironment has grown dramatically compared to when I had previously written about the company. Since then, small UAS and tactical missile systems h ...

Diversifying your portfolio can help you tap into more opportunities and mitigate the risk of significant losses. While tech stocks are often favored due to their high-growth potential, these stocks can fall the hardest during an economic slowdown.Investors looking to take some risk off their portfolios while giving themselves the potential for good returns may want to consider defense stocks. These corporations have government contracts and other revenue streams less likely to falter during slowdowns. Inve ...

Outperforming the S&P 500 is the holy grail achievement for most investors. After all, who wouldn’t want to beat the benchmark that most mutual funds and ETFs fail to surpass annually? However, while we all have dreams of our stocks soaring well beyond the broader market, the reality is that it’s extremely difficult to consistently pick winners that can deliver market-trouncing returns over the long-run.Still, there are exceptional stocks with distinct competitive advantages operating in rapidly-growing ind ...

ARLINGTON, Va.--(BUSINESS WIRE)--AeroVironment, Inc. announced today the first successful multi-drop, live fire GPS-guided Shryke munitions from the VAPOR® 55 MX, all-electric unmanned aircraft system in collaboration with Corvid and L3Harris Technologies. The VAPOR 55 MX carried four rounds simultaneously and flawlessly showcased the live fire effects of this capability. The integration of Shryke munitions on the VAPOR 55 MX allows for multiple targets to be designated in one single flight. “Shryke’s size ...

Financial Data and Key Metrics - Q2 2024 revenue reached $180.8 million, up 62% YoY, marking a record Q2 for the company [6] - Adjusted EBITDA for Q2 2024 was $40 million, a significant increase from $7 million in Q2 2023 [25] - Net income for Q2 2024 was $17.8 million, compared to a net loss of $6.7 million in Q2 2023 [27] - Funded backlog at the end of Q2 2024 stood at $487 million, providing strong visibility for future quarters [6][29] - Adjusted gross margins improved to 43% in Q2 2024, up from 27% in Q2 2023 [24] Business Segment Performance Unmanned Systems (UMS) - UMS revenue more than doubled YoY to $132.8 million, driven by strong international demand for Puma systems and initial shipments of JUMP 20 to Ukraine [11][21] - The segment benefited from the integration of Tomahawk Robotics, which is now part of UMS [9][21] Loitering Munitions Systems (LMS) - LMS revenue was $30.2 million, a 3% decrease YoY, primarily driven by Switchblade 600 sales [21] - The company is negotiating a large multi-year IDIQ contract with the U.S. DoD for LMS products, with significant demand from both U.S. and international allies [14][45] MacCready Works - Revenue for MacCready Works was $17.8 million, a 6% decrease YoY, due to lower SoftBank-funded HAPS revenue [22] - The segment is focused on developing next-generation technologies, including the Sunglider and SOAR programs [17][18] Market and Geographic Performance - The company has nine unmanned platforms deployed in Ukraine, receiving high praise for their effectiveness [8] - Strong demand for Puma and JUMP 20 systems in international markets, particularly in Ukraine, contributed to record deliveries [11][12] - The company is engaged with over 20 countries for Switchblade sales, with about a third in the U.S. DoD export approval process [15][44] Strategic Direction and Industry Competition - The company is leveraging its acquisition of Tomahawk Robotics to enhance interconnectivity and interoperability across its portfolio, offering a common operating picture for customers [9][10] - AeroVironment is positioned as a leader in contested environment operations, autonomous missions, and loitering munitions capabilities [32] - The company is investing in R&D to develop next-generation solutions, including autonomous systems and advanced munitions, to meet evolving customer needs [26][76] Management Commentary on Operating Environment and Future Outlook - Management remains optimistic about future growth, driven by strong demand for unmanned systems and loitering munitions, particularly in international markets [7][33] - The company expects uneven revenue distribution in the second half of FY 2024, with LMS becoming a stronger contributor to revenue growth [30][51] - Gross margins are expected to decline in the second half due to a shift in product mix towards lower-margin LMS products [23][46] Other Important Information - The company has revised its FY 2024 revenue guidance to $685 million - $705 million, reflecting strong performance and the impact of the Tomahawk acquisition [30] - AeroVironment has appointed retired General Joseph Votel to its Board of Directors, bringing extensive military expertise to guide the company's strategic direction [34] Q&A Session Summary Question: Contribution from Tomahawk Robotics and revised guidance - The increase in revenue guidance is attributed to both organic growth and the acquisition of Tomahawk Robotics, with both factors equally represented in the demand for the second half of the year [36] Question: Integration roadmap for Tomahawk Robotics - Integration is on track, with Tomahawk already part of the UMS segment. The company is working on integrating Tomahawk's common controller with its existing products, with significant synergies expected in the future [38][39] Question: Status of Switchblade 600 production - The company has significant production capacity for Switchblade 600, with deliveries expected to increase in the second half of FY 2024. Over 20 countries are interested in acquiring Switchblade, with about a third in the export approval process [43][44] Question: Gross margin outlook for the second half of FY 2024 - Gross margins are expected to decline in the second half due to a shift towards lower-margin LMS products, with adjusted gross margins anticipated to be in the high-30s to low-40s [46][47] Question: Growth outlook for LMS in the second half of FY 2024 - LMS is expected to be the strongest driver of growth in FY 2024, with robust demand for Switchblade 300 and 600 products. The pipeline for LMS is strong, with significant opportunities not yet reflected in the backlog [50][51] Question: Path to improving LMS gross margins - LMS gross margins are improving, with strategies focused on increasing production volume, reducing costs, and enhancing manufacturing efficiency. Switchblade Block 20 products are easier to manufacture, contributing to margin improvements [57][58] Question: LASSO contract and Switchblade IDIQ - The LASSO contract is part of the U.S. Army's program of record, while the IDIQ contract is a larger multi-year agreement that will streamline procurement for Switchblade products. Both contracts are expected to drive significant revenue growth [60][61] Question: SoftBank's funding for HAPS - SoftBank remains committed to funding the HAPS program, although funding has slowed due to macroeconomic conditions. AeroVironment is also investing in HAPS to protect its IP and expects additional funding from the U.S. DoD in FY 2024 [68][69] Question: EPS guidance for the second half of FY 2024 - The decline in EPS guidance for the second half is primarily due to a shift in product mix and increased R&D spending, as the company invests in next-generation technologies [73][75]