Core Insights - AeroVironment reported a revenue of $454.68 million for the quarter ended July 2025, marking a 140% increase year-over-year [1] - The earnings per share (EPS) was $0.32, down from $0.89 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $453.5 million by 0.26%, while the EPS fell short of the consensus estimate of $0.34 by 5.88% [1] Revenue Breakdown - Contract Services revenue reached $141.14 million, significantly surpassing the two-analyst average estimate of $100.37 million, reflecting a year-over-year increase of 370.8% [4] - Product Sales revenue was $313.53 million, exceeding the two-analyst average estimate of $250.07 million, with a year-over-year growth of 96.6% [4] Gross Margin Analysis - Gross margin for Contract Services was reported at $12.27 million, below the average estimate of $25.08 million from two analysts [4] - Gross margin for Product Sales was $82.85 million, also falling short of the two-analyst average estimate of $95.43 million [4] Stock Performance - AeroVironment's shares have declined by 7.8% over the past month, contrasting with a 2.1% increase in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Viewpoint - Analysts expect AeroVironment (AVAV) to report quarterly earnings of $1.44 per share, reflecting a year-over-year increase of 234.9%, with revenues projected at $243.67 million, up 23.7% from the previous year [1]. Earnings Estimates - There has been a downward revision of 21.7% in the consensus EPS estimate over the last 30 days, indicating a collective reconsideration by analysts of their initial forecasts [2]. - Prior to earnings releases, revisions to earnings projections are crucial for predicting investor behavior, as empirical studies show a strong correlation between earnings estimate trends and short-term stock performance [3]. Revenue Projections - Analysts forecast 'Revenue- Product Sales' to reach $198.61 million, indicating a year-over-year change of +20.7% [4]. - 'Revenue- Loitering Munitions Systems (LMS)' is expected to be $133.09 million, suggesting a change of +80.4% year over year [5]. - 'Revenue- Contract Services' is projected at $45.41 million, indicating a year-over-year change of +40.2% [5]. - 'Revenue- MacCready Works (MW)' is expected to reach $19.93 million, reflecting a change of +2.3% from the prior-year quarter [5]. Gross Margin Estimates - Analysts estimate 'Gross margin- Contract services' will likely reach $15.12 million, compared to $11.08 million from the previous year [6]. - The consensus for 'Gross margin- Product sales' is projected at $81.93 million, up from $64.55 million year-over-year [6]. Stock Performance - Over the past month, AeroVironment shares have recorded returns of +11.5%, outperforming the Zacks S&P 500 composite's +0.6% change [6].