The 10-second takeaway
For the quarter ended Oct. 27 (Q2), AeroVironment beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share grew significantly.
Margins grew across the board.
AeroVironment reported revenue of $80.3 million. The 14 analysts polled by S&P Capital IQ predicted a top line of $77.4 million on the same basis. GAAP reported sales were 0.1% lower than the prior-year quarter's $80.4 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 $0.39. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.25 per share. GAAP EPS of $0.39 for Q2 were 30% higher than the prior-year quarter's $0.30 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 44.4%, 630 basis points better than the prior-year quarter. Operating margin was 16.3%, 440 basis points better than the prior-year quarter. Net margin was 10.9%, 270 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $97.0 million. On the bottom line, the average EPS estimate is $0.48.
Next year's average estimate for revenue is $352.0 million. The average EPS estimate is $1.42.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 580 members out of 602 rating the stock outperform, and 22 members rating it underperform. Among 122 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 121 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 $28.73.
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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 owns shares of AeroVironment. 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.