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AeroVironment’s Profit Forecast Boosts Stock Price

AeroVironment’s Profit Forecast Boosts Stock Price

Shares of AeroVironment (NASDAQ:AVAV) surged by 14% in after-hours trading on Tuesday following the company’s announcement of an improved profit outlook. The manufacturer of combat drones and unmanned systems reported strong demand, leading to a 40% increase in fiscal Q1 revenue, totaling $152.3 million. This surpassed the average estimate of Wall Street analysts, which was $131 million.

Regular Australian Army AeroVironment Wasp III UAV launch, flying and recovery demonstration
James Rolevink/iStock Editorial via Getty Images

The company also experienced a significant turnaround in profitability, with a net profit of $21.9 million, or $0.84 per share, compared to a loss of $8.4 million, or $0.34 per share, in the same period last year. Adjusted earnings per share (EPS) of $1 exceeded the consensus estimate of $0.30.

In addition, AeroVironment’s funded backlog saw a substantial increase, rising from $424 million to $540 million.

“Since fiscal year 2024 is off to such a great start, we are also raising our full-year guidance to reflect our improved outlook for the company,” commented Wahid Nawabi, Chairman, President, and CEO of AeroVironment (AVAV).

The company now expects revenue to range between $645 million and $675 million, up from the previous forecast of $630 million to $660 million. Profit estimates have also been revised, with a projected range of $51 million to $59 million, compared to the previous range of $50 million to $58 million.