No stock, no matter how well its underlying company might be doing, can soar high forever. So it was with soaring drone stock AeroVironment (AVAV -6.44%), whose price lost altitude at a more than 6% rate on Friday. A new analyst note was the main catalyst behind the drop, which was notably steeper than the 0.7% slip of the benchmark S&P 500 index.Recommendation cut from BairdWell before market open that day, Baird's Peter Arment downgraded his AeroVironment recommendation to neutral from his previous outper ...

Shares in drone manufacturer AeroVironment (AVAV -2.51%) rose a remarkable 38% in the week to Friday morning, according to data provided by S&P Global Market Intelligence. There's little debate over the reason for the move; it came from its third-quarter 2024 earnings report released on Monday.AeroVironment raises guidance, againAeroVironment's fiscal year finishes at the end of April.The company raised revenue guidance on every single earnings call through its financial year -- a testament to the strengthe ...

Company Performance - AeroVironment (AVAV) has returned approximately 44.6% year-to-date, significantly outperforming the Aerospace sector, which has returned an average of -0.8% [2] - Textron (TXT) has also outperformed the sector with a year-to-date return of 12.6% [2] Analyst Sentiment - The Zacks Consensus Estimate for AVAV's full-year earnings has increased by 1.5% over the past quarter, indicating improving analyst sentiment [2] - Textron's consensus EPS estimate for the current year has risen by 8.7% in the last three months [2] Industry Ranking - AeroVironment is part of the Aerospace - Defense Equipment industry, which has gained an average of 7.9% year-to-date, positioning AVAV as a strong performer within this group [3] - Textron belongs to the Aerospace - Defense industry, which has seen a decline of -3.4% year-to-date [3] Sector Ranking - The Aerospace sector, which includes 47 individual stocks, is ranked 9 in the Zacks Sector Rank [1] - The Aerospace - Defense Equipment industry, which includes 21 companies, is currently ranked 86 in the Zacks Industry Rank [3] - The Aerospace - Defense industry, consisting of 25 stocks, is ranked 89 [3]

yucelyilmaz Investment thesis AeroVironment (NASDAQ:AVAV) reported its Q3 FY24, which significantly outperformed consensus expectations, with its 91% growth in non-GAAP EPS pleasantly surprising me as well. But the surprises on the upside didn’t just stop there, with the drone maker raising its guidance for the remainder of the year while hinting at some strong growth as it heads into FY25. These results were a significant improvement from my first research note on AeroVironment a couple of months ago, ...

Key PointsAeroVironment had a solid quarter with record sales in critical segments. Despite the ramp in sales, the funded backlog improved by 9.1%, suggesting another strong year ahead. Improving growth, margin, and shareholder equity suggests this stock could rise 100% or more by the end of next year. 5 stocks we like better than AeroVironmentAeroVironment NASDAQ: AVAV is not a new company or even a cutting-edge technology, but it has matured into a highly demanded provider of drones and unmanned defense s ...

NiseriN/iStock via Getty Images In May 2023, I started coverage for AeroVironment (NASDAQ:AVAV) stock after the company had just been eliminated from the FTUAS (Future Tactical Unmanned Aerial System) program. At the time, I saw the elimination as a risk to sustained growth for the company and combined with the high EV/EBITDA relative to peers, I put a hold rating on AVAV stock. The stock, however, has performed well, gaining 84% vs. a 22.7% return for the broader markets. In July 2023, I accepted the eleva ...

Key TakeawaysAeroVironment shares soared to a record high Tuesday as the maker of technology for drones, missiles and other military applications posted better-than-expected quarterly results.Quarterly profit was nearly double estimates, and revenue beat forecasts, too.The company raised and narrowed its full-year revenue guidance. Shares of AeroVironment (AVAV) flew to a record high Tuesday as the maker of technology for drones, missiles, and other military applications posted better-than-expected quarterl ...

The defense and aerospace market is ripe for growth. The defense industry is expected to be worth over $1 trillion by 2027, thanks to increased government spending and investment in advanced technologies. This allows investors to enter the industry while it has room to grow. This article will cover three defense stocks investors can buy that benefit from bigger government budgets and new contracts. These companies produce aircraft, vehicles, weapons, communications and other defense-related equipment. They ...

Core Insights - AeroVironment experienced significant growth in its latest quarter, with a 39% year-over-year revenue increase, reaching $186.6 million, and earnings per share of $0.63, surpassing Wall Street expectations [2][3] - The company raised its full-year revenue guidance to between $700 million and $710 million, reflecting strong demand and operational execution [2] - AeroVironment's net cash from operations increased to $26.9 million, up from $8.6 million a year ago, indicating improved financial health [3] Company Performance - The demand for AeroVironment's uncrewed aerial vehicles (UAVs) has surged, particularly due to their effectiveness demonstrated in the Ukraine conflict [2] - The Loitering Munition Systems segment achieved record revenue, contributing to the overall strong performance [2] - The company has a funded backlog of $462.8 million, indicating future growth potential [3] Market Position - AeroVironment's stock rose 28% to an all-time high, reflecting investor confidence in the company's growth trajectory [1] - The company is trading at an enterprise value of 28 times projected EBITDA, suggesting that much of the anticipated growth may already be priced in [3][4] - The defense industry is characterized by traditional income generators, making AeroVironment a unique player with significant growth potential [4]

Financial Data and Key Metrics Changes - Revenue for Q3 2024 reached $187 million, a nearly 40% increase compared to the same quarter last year [7][19] - Adjusted EBITDA for Q3 2024 was $29 million, representing a 21% increase from the previous year [24] - Net income for Q3 2024 was $13.9 million, a significant improvement from a net loss of $0.7 million in the same period last year [27] Business Line Data and Key Metrics Changes - Loitering Munition segment revenue more than doubled year-over-year to $58 million, driven by high demand and emerging programs [10][21] - Unmanned Systems segment revenue rose 23% year-over-year to approximately $113 million, with strong contributions from Puma and JUMP 20 systems [13][20] - MacCready Works segment revenue decreased slightly to $15.6 million, down 13% from the previous year, due to program delays [16][21] Market Data and Key Metrics Changes - Backlog increased by 12% year-over-year, reaching $463 million, despite some headwinds from the continuing resolution and foreign military sales process [8][29] - Product revenue accounted for 84% of total revenues, up from 68% in the same quarter last year, indicating a shift towards product sales [22] Company Strategy and Development Direction - The company is targeting multiple $1 billion programs and investing in upgrades to current platforms to meet evolving battlefield conditions [9] - AeroVironment is actively seeking inorganic opportunities to enhance its product portfolio while focusing on internal development [9] - The company remains optimistic about future growth, particularly in the Loitering Munition segment, and is preparing for increased manufacturing capacity [12][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit revenue growth in fiscal year 2025, supported by strong demand for unmanned solutions [7][30] - The company is well-positioned to benefit from budget priorities in the U.S. and abroad, with a strong backlog and nearly 100% order visibility [30][31] - Management highlighted the importance of congressional budget approvals for future contracts and revenue stability [70] Other Important Information - The company recently won a $16 million contract from the U.S. Navy for advancements in video analytics and computer vision research [17] - The Ingenuity Mars Helicopter completed its mission with 72 flights, showcasing the company's capabilities in advanced technology [17] Q&A Session Summary Question: Can you provide more details on Switchblade capacity expansion? - Management confirmed significant increases in Switchblade production capacity and readiness to meet forecasted demand for the next two years [36][37] Question: What is the timing for the LASSO program? - Management indicated that the U.S. Army is expected to award contracts following budget approvals, likely in the summer [39] Question: How significant is the Raven program to current operations? - Management stated that the Raven program has been in sustainment mode and is not a primary revenue driver, with the Puma system being the main contributor [43][44] Question: What are the implications of recent working capital changes? - Management noted that working capital usage may fluctuate but is manageable due to strong backlog and revenue trends [46][70] Question: How dependent is fiscal 2025 growth on Ukraine funding? - Management indicated that fiscal 2025 growth is not heavily reliant on Ukraine funding, with strong demand expected from various sources [61]