Core Insights - AeroVironment (AVAV) is expected to report quarterly earnings of $0.61 per share, reflecting a 39% decline year-over-year, while revenues are forecasted to increase by 20.9% to $184.26 million [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' projections [1] - Analysts emphasize the importance of earnings estimate revisions in predicting investor reactions and stock price performance [1] Revenue Projections - Revenue from Contract Services is projected to reach $36.71 million, representing an 11.7% year-over-year increase [2] - Revenue from Product Sales is expected to be $149.67 million, indicating a 25.3% increase from the prior-year quarter [2] Gross Margin Estimates - Gross margin from Contract Services is anticipated to be $9.31 million, up from $7.80 million reported in the same quarter last year [2] - Gross margin from Product Sales is forecasted to reach $64.28 million, compared to $57.86 million in the same quarter last year [3] Stock Performance - AeroVironment shares have returned +8.6% over the past month, outperforming the Zacks S&P 500 composite, which saw a +2.6% change [3] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [3]

Core Viewpoint - AeroVironment, Inc. has secured a significant military contract from the U.S. Army valued at over $1 billion, marking a transformative moment for the company and enhancing its growth outlook [2][4][13] Contract Details - The contract is a record for AeroVironment, as typical military contracts are usually in the millions range, and it is expected to boost the company's growth rate and EBITDA margins towards the 20% range [2][4] - The contract involves providing capabilities to dismounted infantry formations, primarily focusing on the production of the Switchblade drone, which is designed to neutralize targets with minimal collateral damage [4][5] Financial Impact - The contract is anticipated to significantly increase AeroVironment's backlog growth, which has historically been in the millions, thus changing the company's financial trajectory [5] - Management has indicated that current manufacturing levels can support over $500 million in annual product revenue, with plans for further capacity growth due to rising demand for the Switchblade [5][7] Growth Projections - The company is expected to achieve at least 17% growth rates in its top line over the coming years, driven by a stronger backlog and increased demand from allied forces [9][10] - EBITDA margins are projected to expand by at least 1%, indicating a minimum of 20% growth in adjusted EBITDA [9][10] Upcoming Earnings Report - The Q1 FY25 earnings report is anticipated to provide an upgraded outlook from management, with consensus estimates predicting earnings per share of 65 cents on revenues of $188 million, reflecting a year-over-year growth of approximately 23% [11][12] - The market will be closely watching for any updates on the fixed-price component of the $1 billion contract, as AeroVironment was the sole bidder for this deal [12]

The drone maker just won its biggest Army contract ever.AeroVironment (AVAV 14.07%) stock took off like a rocket Wednesday morning, rising by 16.5% through 10:15 a.m. ET, after the Pentagon announced the company's single biggest contract win ever.The news led Tuesday night's press release listing the biggest Defense Department contracts awarded that day: $990 million awarded to AeroVironment "to provide an organic, stand-off capability to dismounted infantry formations capable of destroying tanks, light arm ...

In the latest trading session, AeroVironment (AVAV) closed at $177.76, marking a +0.21% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.16%. On the other hand, the Dow registered a gain of 0.02%, and the technology-centric Nasdaq increased by 0.16%.Coming into today, shares of the maker of unmanned aircrafts had gained 1.28% in the past month. In that same time, the Aerospace sector gained 2.37%, while the S&P 500 gained 2.97%.The investment community will be p ...

The most recent trading session ended with AeroVironment (AVAV) standing at $189.80, reflecting a -0.34% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.97%. Meanwhile, the Dow experienced a rise of 0.58%, and the technology-dominated Nasdaq saw an increase of 1.39%.Prior to today's trading, shares of the maker of unmanned aircrafts had gained 15.96% over the past month. This has outpaced the Aerospace sector's gain of 5.45% and the S&P 500's loss of 1.85% in t ...

The most recent trading session ended with AeroVironment (AVAV) standing at $181.52, reflecting a +1.95% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 1.69% for the day. Elsewhere, the Dow saw an upswing of 1.04%, while the tech-heavy Nasdaq appreciated by 2.43%.Coming into today, shares of the maker of unmanned aircrafts had gained 2.23% in the past month. In that same time, the Aerospace sector gained 5.04%, while the S&P 500 lost 4.78%.The inve ...

The most recent trading session ended with AeroVironment (AVAV) standing at $175.15, reflecting a +0.77% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily gain of 0.08%. On the other hand, the Dow registered a loss of 0.12%, and the technology-centric Nasdaq increased by 0.07%.Coming into today, shares of the maker of unmanned aircrafts had lost 4.58% in the past month. In that same time, the Aerospace sector gained 4.32%, while the S&P 500 lost 0.21%.Investors will be e ...

Core Viewpoint - Defense stocks are positioned to benefit from potential changes in U.S. foreign policy, particularly if Donald Trump is re-elected, leading to increased demand for defense solutions [1][3][8] Group 1: Defense Stocks Overview - Defense stocks are considered a crucial sector in the market, with the potential for profitability amid changing political landscapes [2][3] - Lockheed Martin (LMT) reported strong earnings for the second quarter, and its stock may see a shift in ratings depending on political developments [3] - Huntington Ingalls (HII) specializes in maritime defense solutions and is expected to experience significant sales growth due to geopolitical tensions, particularly with China [5][6] Group 2: Company-Specific Insights - Lockheed Martin's demand could surge if Trump is elected again, as his isolationist sentiments create uncertainty among U.S. partners [3][4] - Huntington Ingalls is positioned as a key player in U.S. naval strength, which is critical given China's ambitions [5][6] - AeroVironment (AVAV) focuses on unmanned drones, with anticipated sales growth driven by potential conflicts and a second Trump administration [7][8]

Company Performance - AeroVironment (AVAV) closed at $171.52, reflecting a +1.84% change from the previous session, outperforming the S&P 500's daily loss of 0.16% [1] - Over the past month, shares have depreciated by 11.59%, underperforming the Aerospace sector's loss of 1.18% and the S&P 500's gain of 1.96% [1] - The upcoming financial results are expected to show an EPS of $0.61, a 39% decline year-over-year, with revenue anticipated at $184.26 million, up 20.94% from the prior-year quarter [1] Fiscal Year Estimates - For the entire fiscal year, earnings are projected at $3.41 per share and revenue at $813.75 million, representing increases of +14.05% and +13.54% respectively from the prior year [2] - Recent changes to analyst estimates indicate shifting business dynamics, with positive alterations reflecting analyst optimism regarding the company's profitability [2] Analyst Ratings and Valuation - The Zacks Rank system rates AeroVironment at 3 (Hold), with a proven track record of outperformance for 1 (Strong Buy) stocks returning an average of +25% annually since 1988 [3] - The Forward P/E ratio for AeroVironment is 49.44, indicating a premium compared to the industry's average Forward P/E of 29.06 [3] - The Aerospace - Defense Equipment industry ranks in the top 37% of all industries, with a current Zacks Industry Rank of 92 [3]

gremlin/E+ via Getty Images Shares of AeroVironment (NASDAQ:AVAV) have been on fire in recent years, being a real upcoming player in a somewhat stable defense environment. The unmanned vehicle producer has been on fire in recent years, as its products are really upcoming in the defense industry and used in global battlefields. I like the track record of the business and its positioning, but fear that commanding valuations do not result in a very compelling risk-reward situation here, as there is quite some ...