AeroVironment shares jump on strong earnings

Shares of AeroVironment Inc. surged Wednesday after the maker of unmanned aircraft systems reported strong fiscal first-quarter earnings and several analysts raised their price targets and earnings estimates on the California company.

Shares jumped $4.49, or 15.3 percent, to $33.88 in midday trading. Earlier in the session the stock traded at $35.63, its highest point since going public in January 2007.

For the three months ended Aug. 2, profit rose to $4.8 million, or 22 cents per share, from $3.8 million, or 18 cents per share, in the year-earlier period.

Analysts polled by Thomson Reuters expected, on average, 18 cents per share.

The Monrovia, Calif.-based company said continued progress in its liquid hydrogen-powered unmanned aircraft business lifted revenue by 9 percent to $53.6 million from $49.2 million.

Both SunTrust Robinson Humphrey analyst Chris Donaghey and Stifel Nicolaus analyst Troy J. Lahr raised their fiscal 2009 earnings per share estimate to $1.20 from $1.18. Friedman, Billings, Ramsey analyst Patrick McCarthy raised his profit estimate to $1.16 per share from $1.13.

Analysts polled by Thomson Reuters expect fiscal 2009 earnings per share of $1.13, on average.

Donaghey raised his price target to $36 from $32, Friedman, Billings, Ramsey's McCarthy reiterated his $37 price target and Goldman Sachs analyst Richard Safran increased his price target to $27 from $25.