Latest news with #P550
Yahoo
07-07-2025
- Business
- Yahoo
5 Revealing Analyst Questions From AeroVironment's Q1 Earnings Call
AeroVironment's first quarter saw a positive market reaction as the company's revenue growth outpaced Wall Street expectations, reflecting strong demand for its unmanned systems and defense technology products. Management cited the launch of three new offerings—P550, JUMP 20X, and Red Dragon—and robust loitering munitions sales, especially Switchblade, as primary growth drivers. CEO Wahid Nawabi emphasized that 'our investments in all business segments helped drive demand for our products, which led to key domestic and international wins.' International momentum and sizable contract wins, particularly with the U.S. Army and allied nations, contributed to the quarter's performance. Is now the time to buy AVAV? Find out in our full research report (it's free). Revenue: $275.1 million vs analyst estimates of $243.7 million (39.6% year-on-year growth, 12.9% beat) Adjusted EPS: $1.61 vs analyst estimates of $1.41 (13.9% beat) Adjusted EBITDA: $61.6 million vs analyst estimates of $55.53 million (22.4% margin, 10.9% beat) Adjusted EPS guidance for the upcoming financial year 2026 is $2.90 at the midpoint, missing analyst estimates by 27.9% EBITDA guidance for the upcoming financial year 2026 is $310 million at the midpoint, above analyst estimates of $240.7 million Operating Margin: 5%, up from 3% in the same quarter last year Market Capitalization: $12.11 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Louie DiPalma (William Blair) asked about the U.S. Army's transformation initiative and drone procurement plans. CEO Wahid Nawabi explained that these represent incremental opportunities and that AeroVironment is positioned to benefit from modernization priorities in drones and counter-UAS technologies. Greg Conrad (Jefferies) pressed on revenue guidance ranges and Blue Halo integration. Nawabi clarified that contract timing, especially U.S. DoD awards, drives the forecast range, and early integration focus is on cost—not revenue—synergies. Peter Arment (Baird) questioned segment-level growth variability, especially in Autonomous Systems. Nawabi attributed this to timing and scale of U.S. government contracts, emphasizing the company's readiness to deliver if budget approvals are timely. Andre Madrid (BTIG) inquired about potential impact from a proposed 5% NATO defense spending pledge. Nawabi said AeroVironment is well-positioned to meet increased European demand due to its proven, scalable systems and established presence. Pete Skibitski (Alembic Global) sought clarification on backlog dynamics and capital expenditures. Management confirmed backlog changes resulted from conversion of unfunded to funded contracts, not cancellations, and discussed elevated CapEx to support production for upcoming large programs. Going forward, the StockStory team will be closely monitoring (1) progress on integrating Blue Halo's technologies and realizing expected cost and operational synergies, (2) execution against major U.S. and international defense contracts—including Switchblade and new product orders, and (3) expansion of manufacturing capacity to meet growing demand. Additional focus will be on AeroVironment's ability to secure wins in NATO markets as European defense budgets increase. AeroVironment currently trades at $244.75, up from $191.22 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
Miami Herald
25-06-2025
- Business
- Miami Herald
Drone maker's stock price surges after key update, global conflicts
The defense market has been undergoing a major shift to take advantage of next-generation technology. To augment current systems, the US Department of Defense has embraced remotely operated drones that can be used for surveillance or to drop payloads. It's also made significant investments in space technology and cyber warfare. Don't miss the move: Subscribe to TheStreet's free daily newsletter The Defense Department's embrace of next-gen technology means more money has been flowing to AeroVironment (AVAV) , a leader in autonomous drones via Switchblade and Puma, with healthy exposure to areas like space and electronic warfare. As a result, sales are growing and AeroVironment stock is for drones isn't likely to soften, given they're faster to deploy, less expensive, and arguably more efficient than other solutions. The combination of replacing damaged or retired drones and outfitting global militaries with additional capacity helped AeroVironment generate record fiscal year sales of $821 million, up 14% year over year. In the company's fourth quarter, revenue surged 40% year-over-year to $275 million. Importantly, the company secured a record $1.2 billion in bookings in the past year, providing a nice runway for future sales growth. Its funded backlog is currently $726 million, up 82% from the prior year. Much of the success stems from Switchblade, which was responsible for 80% of the $138 million in quarterly revenue within its Loitering Munition Systems segment. LSS segment sales jumped 87% year over year last quarter. The company received $477 million in funded contract awards for Switchblade over the past year, including the single biggest award in its 54-year history, a 5-year sole-source Army IDIQ contract worth almost $1 billion. The company hopes new products, including the P550, Jump 20-X, and Red Dragon, will attract more awards from the US and its allies in the coming quarters. The P550 is a Group 2 AI-driven autonomous UAS that leverages a modular open-system approach. The JUMP-20X is an uncrewed Vertical Take-Off and Landing (VTOL) aircraft designed to land on moving ships. The Red Dragon is a fully autonomous-capable one-way attack drone that can operate in GPS-denied environments. Overall, AeroVironment estimates that existing orders and demand for new products will grow its revenue to between $1.9 billion and $2 billion in fiscal 2026. In May, AeroVironment closed on its $4.1 billion all-stock acquisition of BlueHalo. The deal helps AeroVironment expand into laser warfare, space, cyber, and unmanned underwater vehicles. Thanks to a deal with Space Force and demand for Radio Frequency Counter-Unmanned Aerial Systems Titan and Titan-SV systems, BlueHalo racked up estimated sales of about $900 million in 2024, up from $660 million in 2021. Following the deal's closure, AeroVironment has decided to shift from three to two operating segments: Autonomous Systems and Space, Cyber, and Directed Energy. The Autonomous systems business will include Switchblade loitering munitions and Red Dragon, counter-UAS solutions, ground and maritime robotics, and MacCready Works, its R&D engine. The Space, Cyber & Directed Energy will include solutions targeting space, laser weapons, cyber solutions, and mission services. Strong sales, solid guidance, and a restructuring to emphasize its opportunity in space warfare have caused AeroVironment's stock price to surge 25% on June 25. Todd Campbell owns shares of AeroVironment. Related: Major analysts predict oil prices if Strait of Hormuz blocked The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
