Latest news with #Switchblade
Yahoo
11-07-2025
- Business
- Yahoo
Pete Hegseth Is Sending Drone Stocks Sky High. How Should You Play RCAT, AVAV, and KTOS Now?
U.S. drone stocks are flying high after Defense Secretary Pete Hegseth said he's fully committed to 'unleashing American drone dominance.' Hegseth confirmed plans of 'rescinding restrictive policies' to boost manufacturing and accelerate the use of unmanned systems for military purposes in a video recorded at the Pentagon on Friday. Creating a 38% 'Dividend' on SOFI Stock Using Options Circle Stock Warning: CRCL Could Fall More Than 50% From Here Joby Aviation Just Hit a New 52-Week High. Should You Buy the Flying Car Stock Here? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Shares of AeroVironment (AVAV) and Kratos Defense (KTOS) rallied more than 10% each, while their smaller peer, Red Cat (RCAT) soared over 20% today. Defense Secretary Pete Hegseth has reportedly instructed the Pentagon to treat drones as 'cheap, rapidly replaceable' munitions – removing bureaucratic bottlenecks and accelerating battlefield deployment. Moving forward, commanders will have the authority to directly procure and test unmanned aerial systems (UAS), including 3D-printed prototypes, bypassing legacy approval processes. This fast-track integration of drone technology into combat and training programs will likely boost demand for domestic suppliers. For drone stocks, including AVAV, KTOS, and RCAT, this means increased orders, faster revenue cycles, and a front-row seat to a multi-year defense-tech boom. Investors should consider building a position in the aforementioned three drone stocks following Hegseth's statement as each stands to play a central role in the American drone supremacy. AeroVironment is a leading supplier of tactical drones and loitering munitions to the U.S. military. Its flagship products like Switchblade and Puma systems have been widely deployed in Ukraine and are central to battlefield reconnaissance and precision strikes. Kratos specializes in high-performance, jet-powered tactical drones such as the XQ-58A Valkyrie, designed for manned-unmanned teaming and autonomous combat missions. Its drones are built for affordability, survivability, and rapid deployment in contested environments. Red Cat Holdings develops low-cost, portable ISR and precision strike drones through its Teal and FlightWave subsidiaries. Its Black Widow drone won the U.S. Army's Short Range Reconnaissance contract, and its FANG FPV drone is optimized for lethal missions. Note that Hegseth's remarks arrive shortly after President Donald Trump signed an executive order in favor of drone technology. U.S. drone stocks are particularly exciting to own following Hegseth's video as Wall Street has a consensus 'Strong Buy' rating on all three. However, today's rally has pushed Kratos well past its mean price target. On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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.
Business Insider
30-06-2025
- Business
- Business Insider
AeroVironment initiated with a Buy at Goldman Sachs
Goldman Sachs initiated coverage of AeroVironment (AVAV) with a Buy rating and $301 price target The firm says the conflict in Ukraine has structurally changed the way war is fought. Low-cost commercial technology has been successfully used by an inferior military to stave off the invasion of a nuclear-powered adversary, the analyst tells investors in a research note. AeroVironment's Switchblade and Puma were highly utilized in the conflict, and the success of these products has been a proof of concept that is driving global demand, contends Goldman. Don't Miss TipRanks' Half Year Sale Take advantage of TipRanks Premium for 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Yahoo
26-06-2025
- Automotive
- Yahoo
AeroVironment Soars 112% in 3 Months. Will the Rally in This Defense Tech Stock Continue?
AeroVironment (AVAV), the defense technology company known for its next-generation unmanned systems and precision-strike solutions, has been on an impressive ascent. Over the past three months, its stock has surged over 112%, including a notable 21.6% jump on June 25 following a blowout fiscal Q4 earnings report. This rally in AVAV stock reflects the robust demand for its specialized defense solutions, particularly its Loitering Munition Systems (LMS), which include Switchblade drones. These systems have become increasingly vital in modern warfare, delivering precision strikes and real-time intelligence. Tesla's Robotaxis Reportedly Sped and Veered Into the Wrong Lanes. Does This Crush the Bull Case for TSLA Stock? 1 Dividend Stock to Buy Yielding Over 7% Ditch Big Tech and Buy These 3 Popular Stocks in 2025 Instead Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! Demand for AeroVironment's battle-proven technology is accelerating, as reflected in its latest financial results. The company posted $275 million in revenue for Q4, a 40% jump compared to the same period last year. Furthermore, AeroVironment concluded fiscal 2025 with record revenue of $821 million, representing a 14% year-over-year increase, despite lower revenue from Ukraine, an area that has been supporting its growth. Still, Ukraine contributed 18% of total annual revenue and 12% of Q4 revenue. Management expects this to shrink to under 5% in FY 2026, though orders for upgrades to existing fleets, such as the Puma and Switchblade drones, continue to come in. This transition marks a pivot toward a more diversified revenue base. That diversification is evident in AeroVironment's international footprint. More than half of its revenue came from overseas markets, with non-Ukraine European nations making up over 24%. Orders from eight different countries for its Switchblade drones totaled nearly $250 million in FY2025, while international demand for its JUMP 20 system — a medium uncrewed aircraft system (MUAS) — generated close to $100 million in orders in the fourth quarter alone. Over half of those JUMP 20 orders were from outside the U.S. From a product standpoint, AeroVironment's LMS division ended the year with $138.3 million in revenue in Q4, primarily driven by the Switchblade 600 platform, which contributed roughly 80% of that total. Its Uncrewed Systems (UxS) segment also performed strongly, pulling in $112.6 million, up 9% year-over-year. The Puma drones made up over half of the UxS revenue, while JUMP 20 contributed nearly 20%. Adding to the positives are the company's stellar bookings and funded backlog. AeroVironment reported $1.2 billion in total bookings and a year-end funded backlog of $726 million, an 82% increase from the prior year. These figures highlight the company's future revenue growth potential, pointing to sustained demand for AeroVironment's suite of defense technologies. Strategically, the company is expanding its capabilities. The recent acquisition of BlueHalo solidifies its position as a comprehensive defense tech provider, now offering all-domain solutions that span air, land, sea, space, and cyber. This acquisition fits seamlessly into AeroVironment's broader strategy to align with the evolving needs of modern warfare and national defense. Looking ahead, AeroVironment's management has issued bullish guidance, forecasting revenue between $1.9 billion and $2 billion for fiscal year 2026, more than double FY25's figure. This aggressive growth outlook reflects rising demand, enhanced production capacity, and a steady pipeline of innovation. The company's commitment to R&D and innovation is yielding results. In FY25, it rolled out three new advanced systems. These new offerings expand AeroVironment's product portfolio and address the evolving tactical requirements of global military clients, strengthening its position as a next-generation defense contractor. Given the solid demand environment, strong order flow, and robust growth trajectory, Wall Street analysts have assigned a 'Strong Buy' consensus rating to the stock. However, the recent stock rally has pushed AeroVironment's share price above the average analyst price target and the Street-high price target. This indicates that much of the positives are already reflected in the stock price. In summary, while AeroVironment's recent run-up has been nothing short of stellar, the company's fundamentals and solid demand suggest that the rally may not be over yet. However, it would be wise to keep this defense technology company on your radar and consider a long position if the stock takes a breather before rallying again. On the date of publication, Amit Singh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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.
