AeroVironment shares jumped 29% on Wednesday’s trading after the company announced strong results after market close on Tuesday that beat market expectations.
Strong earnings
The drone maker reported a $1.61 per share adjusted earnings against $1.39 per share, which was the market expectation.
Its revenue was at $275 million against $242 million expectation.
AeroVironment, a key player in the defense technology sector, revealed a record fiscal year revenue of $820.6 million.
This figure marks a significant 14% increase compared to the previous fiscal period, underscoring the company’s growth trajectory.
In its fourth quarter, AeroVironment posted a net income of $16.66 million, translating to 59 cents per share.
This represents a substantial improvement over the same period last year, when the company reported a net income of $6.05 million, or 22 cents per share.
Value-adding acquisitions
Adding to its strategic advancements, AeroVironment completed the acquisition of defense technology firm BlueHalo on May 1st, in a transaction valued at $4.1 billion.
Wahid Nawabi, CEO of AeroVironment, commented on the acquisition, stating, “Our acquisition of BlueHalo further advances our leadership position within the defense-technology sector by adding a complementary portfolio of innovative products and capabilities aligned to our customers’ highest priorities.”
This move is expected to bolster AeroVironment’s offerings and reinforce its standing in the defense market.
As of April 30, 2025, the company’s funded backlog reached $726.6 million, marking a substantial increase from the $400.2 million reported on April 30, 2024.
Its bookings for the fiscal year ending April 30, 2025, totaled $1.2 billion, reflecting strong inbound business.
Addressing prior concerns regarding a decline in unfunded backlog, the company clarified that this shift was primarily attributable to changes in U.S. Army contracting mechanisms, rather than a fundamental reduction in demand for its products.
Forecast also adds to optimism
The company anticipates revenue for fiscal year 2026 to range between $1.9 billion and $2.0 billion and adjusted earnings per share (EPS) in the range of $2.80 to $3.00. This projection notably incorporates the expected financial contributions from the BlueHalo acquisition.
The company’s projections for FY26 exceeded current consensus expectations.
Analysts at Stifel have maintained their “buy” rating on AeroVironment, along with a $240 price target, following a standout quarter for the defense technology firm. The period was notably propelled by a significant surge in Loitering Munitions (LMS) revenue, which escalated by 86% year-over-year to reach $138 million.
This figure substantially surpassed both Stifel’s forecast of $95 million and the broader consensus estimate of $115 million.
Stifel also highlighted the quarter’s adjusted EBITDA of $62 million, noting it as one of the highest in the company’s operational history.
AeroVironment’s shares surged 29.34% to an intraday high of $250. At the time of writing, the stock gave up some gains and was trading around $237.
The stock has rallied 52% in the year so far.
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