AeroVironment Stock Drops After Mixed Earnings

AreoVironment, Inc. (NASDAQ:AVAV) shares are trading lower Wednesday after the company reported mixed earnings and issued mixed guidance.

What To Know: The company reported adjusted earnings per share of 44 cents, missing the consensus estimate of 78 cents. In addition, AreoVironment posted revenue of $472.50 million, beating the consensus estimate of $468.48 million.

AeroVironment said second-quarter results included record revenue, up 151% year-over-year, reflecting contributions from its BlueHalo acquisition. Autonomous Systems generated $301.6 million and Space, Cyber and Directed Energy contributed $170.9 million.

The company posted a net loss for the quarter as higher SG&A and R&D expenses, along with $48.2 million in intangible amortization and other non-cash purchase accounting charges, weighed on results. Gross margin declined due to a greater mix of service work and higher amortization expenses tied to the acquisition.

AeroVironment reported bookings of $1.4 billion and a book-to-bill ratio of 2.9. Funded backlog reached $1.1 billion as of Nov. 1, up from $726.6 million at the end of April.

FY26 Outlook: The company lowered its adjusted earnings per share guidance from between $3.60 and $3.70 to between $3.40 and $3.55, versus the consensus estimate of $3.64. Furthermore, it raised its revenue guidance from between $1.90 billion and $2.00 billion to between $1.95 billion and $2.00 billion, versus the consensus estimate of $1.99 billion.

Following the earnings report, Cantor Fitzgerald analyst Colin Canfield maintained an Overweight rating on AeroVironment and lowered the price target from $335 to $315.

See Also: JPMorgan Shares Rise Ahead Of Fed Decision: Why A ‘Hawkish Cut’ May Ignite The Bank’s Next Rally

AVAV Price Action: At the time of writing, AreoVironment shares are trading 12.12% lower at $247.24, according to data from Benzinga Pro.

This illustration was generated using artificial intelligence via Midjourney.