Sun. Sep 24th, 2023
    AeroVironment Reports Strong Q1 Results and Receives Analyst Upgrade

    AeroVironment, a drone and robotics manufacturer based in Arlington, Va., exceeded expectations with its Q1 results and received an analyst upgrade and price target hike. The company reported adjusted earnings of $1 per share, compared to a loss of 10 cents per share in the previous year, and revenue increased by 40% to $152.3 million. This performance surpassed analysts’ expectations of earnings of 26 cents per share and $128.5 million in revenue.

    One of the notable products from AeroVironment is the Switchblade drone, which has been utilized in Ukraine since Russia’s invasion in February 2022. These drones are unique as they are launched from tubes and crash into their targets to detonate explosive warheads, earning them the nickname “suicide” drones. Another drone in AeroVironment’s portfolio is the Puma hand-launched recon drones, which have also been deployed in overseas conflicts.

    AeroVironment’s backlog reached a record $539.7 million, experiencing a 27% surge compared to the previous quarter. The company also secured $270 million in new bookings during the quarter, demonstrating strong growth across all of its business segments. This backlog provides 100% coverage for AeroVironment’s annual revenue outlook, setting the stage for favorable growth in the coming quarters.

    In addition, AeroVironment announced plans to acquire Tomahawk Robotics for $120 million. This acquisition is expected to enhance the company’s unmanned systems and drone performance through the implementation of AI-enabled robotics control systems. AeroVironment has raised its revenue guidance based on its order growth and now expects full-year sales between $645 million to $675 million.

    Following the impressive Q1 results, Baird upgraded AeroVironment from neutral to outperform and raised its price target on AVAV stock from $95 to $128. This upgrade reflects the company’s strong start to the fiscal year and the robust demand for its Switchblade drones. As a result, AVAV stock surged 20.6%, reaching a new 2023 high of $124.33.

    – Definition of AeroVironment: Investopedia
    – Definition of Q1: Investopedia