AeroVironment inventory drops on weak steerage regardless of income beat

ARLINGTON, Virginia – AeroVironment , Inc. (NASDAQ:AVAV) noticed its inventory tumble 7.5% after the protection expertise firm issued weaker-than-expected steerage for the complete fiscal yr, overshadowing a income beat in its second quarter outcomes.

The unmanned plane techniques maker reported second quarter income of $188.5 million, up 4% YoY and surpassing analyst estimates of $177.06 million. Nevertheless, adjusted earnings per share got here in at $0.47, lacking the $0.69 consensus forecast by a large margin.

For fiscal yr 2025, AeroVironment expects income between $790 million and $820 million, under the $828 million analyst consensus. The corporate’s adjusted EPS steerage vary of $3.18 to $3.49 was largely in keeping with estimates of $3.38.

“AeroVironment continues to ship sturdy outcomes, together with report second-quarter income together with a wholesome funded backlog that’s 25% larger than the prior quarter,” mentioned Wahid Nawabi, AeroVironment’s chairman, president and CEO.

The corporate’s funded backlog rose to $467.1 million as of October 26, up from $400.2 million on the finish of April. Income development was pushed by a 157% enhance within the Loitering Munitions Techniques section, offset partially by a 35% decline in UnCrewed Techniques.

AeroVironment additionally introduced plans to amass BlueHalo in an all-stock deal valued at roughly $4.1 billion, which it says will broaden its portfolio in key protection and intelligence sectors.

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