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AeroVironment shares plunge 8% after announcing Q4 results

EditorRachael Rajan
Published 26/06/2024, 21:28
© Reuters.
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ARLINGTON, VA - AeroVironment , Inc. (NASDAQ:AVAV), a leading provider of unmanned aircraft systems and tactical missile systems, reported a robust finish to its fiscal year with fourth-quarter earnings surpassing analyst expectations. The company announced a fourth-quarter adjusted EPS of $0.43, which was notably higher than the analyst estimate of $0.21. Despite the earnings beat, the company's shares fell by 8%.

The company's revenue for the quarter also exceeded consensus estimates, coming in at $197 million against expectations of $188.56 million. This represents a 6% increase from the $186 million reported in the same quarter last year, driven primarily by a 74% surge in revenue from its Loitering Munitions Systems segment. However, this growth was partially offset by a 15% decrease in its UnCrewed Systems segment and a 9% decline in MacCready Works.

Wahid Nawabi, chairman, president, and CEO of AeroVironment, attributed the company's solid performance to increased demand for its autonomous systems and the expansion of capacity to meet customer needs. "We are therefore issuing fiscal year 2025 revenue guidance of between $790 million and $820 million, another record year and double-digit revenue increase from fiscal year 2024," Nawabi stated.

For the upcoming fiscal year 2025, AeroVironment provided guidance for an EPS range of $3.18 to $3.49, with a midpoint slightly below the analyst consensus of $3.36. The company's revenue guidance for fiscal year 2025 is forecasted to be between $790 million and $820 million, with the midpoint falling below the consensus estimate of $805 million.

AeroVironment's funded backlog as of April 30, 2024, stood at $400.2 million, a slight decrease from the $424.1 million reported at the same time last year. The backlog does not include new orders from several recently announced program wins, indicating potential for future growth.

"As the need for our autonomous systems continues to rapidly increase worldwide, AeroVironment stands ready to meet our customer’s needs while delivering solid bottom-line results for our shareholders," Nawabi affirmed.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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