AeroVironment (NASDAQ:AVAV) stock surged more than 19% in yesterday’s extended trading session. The upside comes after the company reported stellar third-quarter results, driven by robust global demand. Also, AVAV raised its revenue and earnings guidance for Fiscal 2024.
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AVAV is a technology company that develops unmanned aircraft systems and military drones.
Q4 Snapshot
The company’s adjusted earnings of $0.63 per share easily outpaced the Street’s estimates of $0.34 per share and increased 90.1% from the prior-year quarter. At the same time, revenues grew about 39% year-over-year to $186.6 million and exceeded analysts’ estimates of $172 million.
The top-line growth was supported by higher revenues from its Loitering Munitions Systems (LMS) and Unmanned Systems (UMS) segments, partly offset by lower sales in the MacCready Works (MW) segment.
In terms of other metrics, AeroVironment reported a funded backlog of $462.8 million, up 11.8% from the prior-year quarter. This metric serves as an indicator of future revenue.
Outlook
Buoyed by robust demand momentum, AVAV raised the full Fiscal 2024 revenue outlook to between $700 million and $710 million versus the previous guidance of $685 million to $705 million. The analysts expect the company to report $700.8 million in revenues.
Additionally, the company now anticipates that adjusted earnings will be in the range of $2.69 to $2.83 per share, above the prior expectations of $2.46 to $2.70. The guided range includes the consensus estimate of $2.73.
Is AVAV a Buy or Sell?
The company is benefiting from strong demand for its products due to the addition of artificial intelligence-related capabilities, and recent global geopolitical tension. Moreover, strong ties with the U.S. Department of Defense and technological innovation keep AVAV well poised for growth.
On TipRanks, AeroVironment stock has a Strong Buy consensus rating based on four unanimous Buy ratings received during the past three months. The average AVAV stock price target of $152.33 implies a 16.6% upside potential from current levels. Shares of the company have gained 37.1% in the past six months.
