AeroVironment (NASDAQ:AVAV) Releases Earnings Results, Beats Expectations By $0.37 EPS

AeroVironment (NASDAQ:AVAV) released its quarterly earnings results on Wednesday. The aerospace company reported $0.59 earnings per share for the quarter, beating analysts’ consensus estimates of $0.22 by $0.37, Zacks reports. AeroVironment had a negative net margin of 9.00% and a positive return on equity of 3.71%. AeroVironment updated its FY 2027 guidance to 3.020-3.340 EPS.

AeroVironment Stock Performance

Shares of AVAV stock traded down $7.98 during mid-day trading on Wednesday, reaching $140.80. The stock had a trading volume of 4,242,673 shares, compared to its average volume of 1,613,943. AeroVironment has a 1-year low of $135.20 and a 1-year high of $417.86. The firm has a market cap of $7.16 billion, a price-to-earnings ratio of -38.26, a PEG ratio of 5.00 and a beta of 1.41. 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 business’s fifty day moving average is $159.81 and its 200-day moving average is $180.82.

Wall Street Analyst Weigh In

Several research firms have issued reports on AVAV. William Blair reaffirmed an “outperform” rating on shares of AeroVironment in a report on Wednesday, July 15th. Citigroup reissued a “market outperform” rating on shares of AeroVironment in a report on Tuesday, July 28th. Wedbush started coverage on shares of AeroVironment in a report on Tuesday, June 30th. They set an “outperform” rating and a $250.00 price objective on the stock. KeyCorp reaffirmed an “overweight” rating on shares of AeroVironment in a research report on Tuesday, July 28th. Finally, Stifel Nicolaus dropped their target price on shares of AeroVironment from $315.00 to $220.00 and set a “buy” rating on the stock in a research report on Tuesday, June 30th. Two investment 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 issued a Sell rating to the stock. According to MarketBeat, AeroVironment currently has a consensus rating of “Moderate Buy” and an average target price of $262.74.

Insider Transactions at AeroVironment

In other AeroVironment news, Director Stephen F. Page sold 250 shares of the firm’s stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $191.98, for a total transaction of $47,995.00. Following the completion of the transaction, the director directly owned 48,503 shares of the company’s stock, valued at approximately $9,311,605.94. This trade represents a 0.51% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 transaction of $41,381.30. Following the sale, the chief accounting officer owned 7,888 shares of the company’s stock, valued at approximately $1,592,271.68. The trade was a 2.53% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 705 shares of company stock valued at $132,979 in the last ninety days. Corporate insiders own 0.79% of the company’s stock.

Institutional Trading of AeroVironment

A number of hedge funds and other institutional investors have recently made changes to their positions in AVAV. National Bank of Canada FI raised its holdings in shares of AeroVironment by 230.3% during the third quarter. National Bank of Canada FI now owns 109 shares of the aerospace company’s stock worth $34,000 after purchasing an additional 76 shares during the last quarter. Kemnay Advisory Services Inc. purchased a new stake in AeroVironment in the fourth quarter valued at $40,000. Banque Cantonale Vaudoise acquired a new stake in AeroVironment during the 3rd quarter worth about $44,000. EverSource Wealth Advisors LLC raised 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 buying an additional 156 shares during the last quarter. Finally, Parkside Financial Bank & Trust raised its stake in shares of AeroVironment by 29.7% during the 4th quarter. Parkside Financial Bank & Trust now owns 188 shares of the aerospace company’s stock valued at $45,000 after buying an additional 43 shares during the last quarter. Institutional investors and hedge funds own 86.38% of the company’s stock.

Key Stories Impacting AeroVironment

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: AeroVironment reportedly secured its first international order for the LOCUST counter-drone laser system. The deal expands the company’s international customer base and supports the long-term growth case for its directed-energy and counter-UAS products. AeroVironment Nabs First International Order For LOCUST Counter-Drone Laser System
• Neutral Sentiment: Wall Street is focused on tonight’s earnings release, with consensus first-quarter EPS estimated at approximately $0.25, or about 22% below the year-earlier result. Investors will look for revenue growth, order momentum and management’s comments on the full-year outlook. What Wall Street Expects from Earnings Today
• Negative Sentiment: Analysts have reduced their estimates 11 times over the past 90 days, while reports say AeroVironment has missed expectations in three consecutive quarters. This has raised the risk that another disappointment or weaker guidance could further damage investor confidence. Stock Faces Earnings Test Amid Declining Analyst Expectations
• Negative Sentiment: Drone stocks broadly sold off without a clear company-specific catalyst as investors rotated away from riskier, high-beta names. AeroVironment’s roughly 41% year-to-date decline and elevated earnings uncertainty made it particularly vulnerable to the risk-off trading. Drone Stocks Slide as Risk-Off Sentiment Hits High-Beta Names
• Negative Sentiment: Berger Montague announced an investigation into AeroVironment’s board over potential breaches of fiduciary duty. The inquiry is at an early stage, but it adds legal and governance overhang ahead of the earnings report. Berger Montague Board Investigation

AeroVironment Company Profile

AeroVironment, Inc (NASDAQ:AVAV) is a technology company specializing in unmanned aerial systems (UAS), tactical missiles and precision loitering munitions, electric vehicle charging and scalable energy systems. Headquartered in Monrovia, California, the company develops solutions for defense, public safety and commercial markets. Their offerings include small UAS for intelligence, surveillance and reconnaissance, as well as advanced weapons systems designed to meet the needs of modern military operations.

The company’s unmanned aerial systems portfolio features platforms such as the Raven, Puma and Switchblade series, which are deployed by the U.S.