Why Aerovironment's Shares Popped

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of drone and electric car charger maker Aerovironment (Nasdaq: AVAV  ) jumped 13% today after the company announced fiscal second-quarter earnings.

So what: The company reported a slight decline in revenue to $80.3 million, but earnings rose 32% to $8.7 million, or $0.39 per share. Analysts expected revenue of $77.1 million and earnings of $0.22 per share.  

Management also said fiscal 2013 revenue will be between $348 million and $370 million and earnings will be $1.41 to $1.51 per share.

Now what: The full-year guidance was ahead of estimates, so investors are becoming more confident in the future. There's concern that drone orders will decline as the military cuts spending because of the budget deficit. That fear appears to be mitigated for the time being.

The stock still isn't cheap, and I'd rather be a buyer on a pullback to near $20, but long term, I still think Aerovironment is in a strong position.

Interested in more info on Aerovironment? Add it to your watchlist by clicking here.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2141133, ~/Articles/ArticleHandler.aspx, 10/24/2016 4:20:24 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,223.03 77.32 0.43%
S&P 500 2,151.33 10.17 0.47%
NASD 5,309.83 52.43 1.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/24/2016 4:00 PM
AVAV $22.80 Up +0.52 +2.33%
AeroVironment CAPS Rating: ****