When your company is built on two businesses -- one in an emerging industry, and the other in an increasingly challenged sector -- it's hard for the market to know which way you're headed. AeroVironment
So when AeroVironment posted better-than-expected earnings yesterday, why did the stock fall almost 10%? The answer depends on where you're looking.
The unmanned aircraft division relies on the Department of Defense for most of its revenue. With the budget under fire and two wars winding down (hopefully), how much growth can we possibly expect? That's a big question as AeroVironment launches new products.
The Switchblade, an exploding UAV, could redefine how we use unmanned aircraft in combat. The device can not only spot targets, but take them out on the fly.
The Shrike vertical take-off and landing unmanned aircraft is the latest advance in AeroVironment's fleet. The Shrike looks like a quad helicopter, and has the ability to hover and stream "several hours of live video."
If there's concern about funding future aircraft or the DoD cutting back on spending, I think AeroVironment has done a good job making itself relevant for the future. With competitors like Boeing
The future is here
Growth in the UAS division may slow, but the EES division is just starting to take off. AeroVironment's fast electric vehicle chargers have gotten the nod from Oregon, Washington, Hawaii, NRG Energy
Again, making further headway in this market won't be easy for AeroVironment. General Electric
Which way are we headed?
The market obviously wasn't excited about yesterday's results, but I still think the future is bright for AeroVironment. Innovative products will keep the company relevant to the DoD, and electric charger sales are just starting to ramp up. This Fool thinks the best is still to come.
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