The 10-second takeaway
For the quarter ended Oct. 27 (Q2), AeroVironment beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share grew significantly.
Margins grew across the board.
AeroVironment reported revenue of $80.3 million. The 14 analysts polled by S&P Capital IQ predicted a top line of $77.4 million on the same basis. GAAP reported sales were 0.1% lower than the prior-year quarter's $80.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.39. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.25 per share. GAAP EPS of $0.39 for Q2 were 30% higher than the prior-year quarter's $0.30 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 44.4%, 630 basis points better than the prior-year quarter. Operating margin was 16.3%, 440 basis points better than the prior-year quarter. Net margin was 10.9%, 270 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $97.0 million. On the bottom line, the average EPS estimate is $0.48.
Next year's average estimate for revenue is $352.0 million. The average EPS estimate is $1.42.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 580 members out of 602 rating the stock outperform, and 22 members rating it underperform. Among 122 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 121 give AeroVironment a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AeroVironment is hold, with an average price target of $28.73.
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