Why AeroVironment Stock Is Rising Today

Zinger Key Points
  • AeroVironment’s third-quarter revenue increased 39% year-over-year to $186.6 million.
  • AeroVironment shares were up more than 17% at last check.

AeroVironment Inc AVAV shares are moving higher Tuesday after the company reported better-than-expected financial results and issued guidance.

  • Q3 Revenue: $186.6 million, beat estimates of $170.625 million
  • Q3 EPS: 63 cents, beat estimates of 33 cents

Total revenues increased 39% on a year-over-year basis, reflecting higher product sales of $64.7 million. Income from operations was $14.3 million in the third quarter. The company said it had a funded backlog of $462.8 million as of Jan. 27.

"Solid bottom-line results, fueled by record demand and strong operating execution, have us on track for our best year ever. In addition, the Company continues to show tremendous growth in the Loitering Munition Systems segment, which delivered record revenue in the quarter," said Wahid Nawabi, chairman, president and CEO of AeroVironment. 

"With the increased global demand for our solutions, strong backlog and growing pipeline, AeroVironment remains well positioned for continued growth."

Outlook: AeroVironment expects full-year 2024 revenue to be between $700 million and $710 million versus estimates of $700.833 million. The company expects full-year adjusted earnings to be between $2.69 and $2.83 per share versus estimates of $2.73 per share. AeroVironment continues to expect double-digit revenue growth in full-year 2025.

See Also: Jim Cramer Says Apple Stock Short-Term Prospects Is ‘Not A Table Pounder’

How To Buy AVAV Stock

By now you're likely curious about how to participate in the market for AeroVironment – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the case of AeroVironment, which is trading at $152.97 as of publishing time, $100 would buy you 0.65 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

AVAV Price Action: AeroVironment shares were up 21.9% at $159.21 at the time of writing, according to Benzinga Pro.

Photo: Harald Landsrath from Pixabay.

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