What happened
Shares of AeroVironment (AVAV 1.74%) surged 14.9% on Thursday after the defense contractor delivered solid operating results and confirmed its full-year financial forecast.
So what
AeroVironment's revenue rose 7% year over year to $108.5 million in its fiscal 2023 first quarter, which ended on July 30. The gains were fueled in part by growth in the company's tactical missile systems and small unmanned aircraft systems segments.
Moreover, AeroVironment's gross margin expanded to 31% from 28% in the prior-year quarter, as it sold more of its most profitable products. Its gross profit, in turn, jumped 17% to $33.7 million.
NASDAQ: AVAV
Key Data Points
Still, AeroVironment generated an operating loss of $3.3 million. Supply chain constraints are making it difficult for the defense specialist to satisfy the booming demand for its drones, which have performed well during the war between Ukraine and Russia. Cost inflation is also taking a toll on its operating margins.
That was, however, an improvement from the $12.1 million loss it posted in the year-ago period. Its net loss also narrowed to $8.4 million, or $0.34 per share, from $14 million, or $0.57 per share.
Now what
AeroVironment reiterated its full-year guidance, which includes:
- revenue of $490 million to $520 million
- net income of $11 million to $18 million
- adjusted earnings per share of $1.35 to $1.65
The company also reported a record backlog of $307.6 million as of Aug. 27.
"Overall, we are successfully managing ongoing supply chain challenges and are well positioned for continued value creation due to strong demand across nearly all our product lines," CEO Wahid Nawabi said.
