The 10-second takeaway
For the quarter ended July 28 (Q1), AeroVironment missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
AeroVironment logged revenue of $58.7 million. The 13 analysts polled by S&P Capital IQ predicted revenue of $62.4 million on the same basis. GAAP reported sales were 5.4% lower than the prior-year quarter's $62.0 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 -$0.06. The 13 earnings estimates compiled by S&P Capital IQ anticipated -$0.02 per share. GAAP EPS were -$0.06 for Q1 against $0.01 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 33.2%, 180 basis points worse than the prior-year quarter. Operating margin was -3.8%, 450 basis points worse than the prior-year quarter. Net margin was -2.4%, 290 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $82.5 million. On the bottom line, the average EPS estimate is $0.29.
Next year's average estimate for revenue is $355.1 million. The average EPS estimate is $1.45.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 583 members out of 603 rating the stock outperform, and 20 members rating it underperform. Among 118 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 117 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 $29.91.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend AeroVironment. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.