AeroVironment (NASDAQ:AVAV) Announces Earnings Results, Beats Estimates By $0.37 EPS

AeroVironment (NASDAQ:AVAV) released its quarterly earnings results on Wednesday. The aerospace company reported $0.59 EPS for the quarter, beating analysts’ consensus estimates of $0.22 by $0.37, Zacks reports. The business had revenue of $480.49 million during the quarter, compared to analyst estimates of $451.95 million. AeroVironment had a positive return on equity of 4.06% and a negative net margin of 5.77%.AeroVironment’s quarterly revenue was up 5.7% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.32 EPS. AeroVironment updated its FY 2027 guidance to 3.020-3.340 EPS.

Here are the key takeaways from AeroVironment’s conference call:

• Strong first-quarter performance: Revenue reached a record $480 million, bookings were $683 million, adjusted EBITDA was $53 million, and funded backlog rose 37% year over year to a record $1.5 billion.
• Counter-UAS momentum accelerated with the nearly $465 million LOCUST directed-energy contract, an initial Titan award under a $500 million IDIQ, and capacity expansions for LOCUST and Freedom Eagle One. Management believes LOCUST could become a more than $500 million annual franchise over time, with international demand potentially comparable to U.S. demand.
• The Autonomous Systems segment grew 21% year over year, led by a 71% increase in Uncrewed Aircraft Systems revenue from P550, JUMP 20-X, and Puma, while the P550 LRR award and Switchblade contracts provide additional multiyear growth visibility.
• Near-term profitability and cash flow face pressure: SCDE revenue declined 21% year over year following the SCAR contract termination, service gross margin fell to 8% from 13%, and free cash flow was negative $36 million as the company increased capital spending and inventory.
• Management reaffirmed fiscal 2027 guidance for revenue of $2.125 billion–$2.225 billion and adjusted EBITDA of $305 million–$325 million, but expects results to be heavily weighted toward the second half; uncertainty over the timing of Congressional budget approval remains a monitored risk.

AeroVironment Stock Up 4.5%

AeroVironment stock opened at $147.07 on Friday. AeroVironment has a 12 month low of $135.20 and a 12 month high of $417.86. The stock has a fifty day simple moving average of $158.30 and a two-hundred day simple moving average of $179.00. The company has a current ratio of 4.30, a quick ratio of 3.59 and a debt-to-equity ratio of 0.17. The firm has a market cap of $7.47 billion, a price-to-earnings ratio of -62.85, a PEG ratio of 4.87 and a beta of 1.41.

Insider Activity

In other news, CAO Brian Shackley sold 205 shares of AeroVironment stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $201.86, for a total value of $41,381.30. Following the completion of the sale, the chief accounting officer directly owned 7,888 shares in the company, valued at $1,592,271.68. The trade was a 2.53% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen F. Page sold 250 shares of the firm’s stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $191.98, for a total transaction of $47,995.00. Following the completion of the sale, the director owned 48,503 shares in the company, valued at $9,311,605.94. This represents a 0.51% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 705 shares of company stock valued at $132,979 over the last quarter. 0.79% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On AeroVironment

Hedge funds and other institutional investors have recently modified their holdings of the company. National Bank of Canada FI increased its position in AeroVironment by 230.3% during the third quarter. National Bank of Canada FI now owns 109 shares of the aerospace company’s stock valued at $34,000 after acquiring an additional 76 shares during the last quarter. Banque Cantonale Vaudoise purchased a new position in AeroVironment in the third quarter worth about $44,000. EverSource Wealth Advisors LLC grew its stake in shares of AeroVironment by 5,200.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 159 shares of the aerospace company’s stock valued at $45,000 after purchasing an additional 156 shares during the period. Kemnay Advisory Services Inc. bought a new stake in shares of AeroVironment during the 4th quarter valued at about $40,000. Finally, Kelleher Financial Advisors bought a new position in shares of AeroVironment in the 3rd quarter worth approximately $58,000. 86.38% of the stock is owned by institutional investors.

AeroVironment News Roundup

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: Strong earnings beat: Fiscal Q1 FY2027 revenue rose 5.7% year over year to a record $480.5 million, exceeding estimates near $452 million. Adjusted EPS of $0.59 was well above the roughly $0.22 consensus and increased from $0.32 a year earlier. AeroVironment Announces Fiscal 2027 First Quarter Results
• Positive Sentiment: Backlog and bookings support visibility: Funded backlog reached a record $1.5 billion, up 37% year over year, while quarterly bookings totaled approximately $700 million and the book-to-bill ratio was 1.4. Management said fiscal 2027 is off to a strong start, supporting expectations for a second-half production ramp.
• Positive Sentiment: International LOCUST milestone: AeroVironment received its first international commercial order for the LOCUST directed-energy counter-drone system, valued at more than $50 million. The deal expands the product’s addressable market and reinforces investor enthusiasm for laser-based defense technology. AV Secures First International Order for LOCUST Directed Energy Counter-Drone Systems
• Positive Sentiment: Analyst support: JPMorgan raised its price target to $210 and maintained an Overweight rating, while Citizens JMP, Needham and BTIG reaffirmed positive ratings with targets ranging from $205 to $230. The revisions reflect confidence in demand for drones, counter-drone systems and LOCUST.
• Neutral Sentiment: Guidance was maintained: Fiscal 2027 revenue guidance remains $2.125 billion to $2.225 billion, with adjusted EPS guidance of $3.02 to $3.34. Maintaining the outlook reduces downside uncertainty, although the revenue midpoint is slightly below analyst expectations.
• Negative Sentiment: Execution and valuation risks remain: Revenue growth is moderating, the company reported a GAAP net loss, and analysts continue to question profit conversion and production execution. The stock’s elevated valuation and recent institutional selling could limit further gains if future results do not sustain the current backlog momentum.

Analysts Set New Price Targets

AVAV has been the topic of several research analyst reports. KeyCorp reiterated an “overweight” rating on shares of AeroVironment in a research report on Tuesday, July 28th. Stifel Nicolaus lowered their price target on shares of AeroVironment from $315.00 to $220.00 and set a “buy” rating for the company in a research report on Tuesday, June 30th. Weiss Ratings restated a “sell (d)” rating on shares of AeroVironment in a report on Friday, September 4th. UBS Group raised their target price on shares of AeroVironment from $166.00 to $170.00 and gave the company a “neutral” rating in a research note on Thursday. Finally, Citizens Jmp reiterated a “market outperform” rating and set a $230.00 target price on shares of AeroVironment in a report on Thursday. Two analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $249.89.

AeroVironment Company Profile

AeroVironment, Inc is a defense technology company that develops and produces unmanned aircraft systems, loitering munitions, counter-unmanned aircraft systems and related robotic technologies. Its products are designed for intelligence, surveillance and reconnaissance, precision strike, force protection and tactical communications applications.

The company’s portfolio includes the Raven, Puma and Wasp small unmanned aircraft systems; the JUMP 20 vertical takeoff and landing aircraft; and the Switchblade family of loitering munitions.