The 10-second takeaway
For the quarter ended Jan. 26 (Q3), AeroVironment whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. GAAP earnings per share dropped significantly.
Gross margins grew, operating margins dropped, net margins grew.
AeroVironment recorded revenue of $47.1 million. The 13 analysts polled by S&P Capital IQ looked for a top line of $88.8 million on the same basis. GAAP reported sales were 35% lower than the prior-year quarter's $72.0 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 $0.17. The eight earnings estimates compiled by S&P Capital IQ averaged $0.38 per share. GAAP EPS of $0.17 for Q3 were 35% lower than the prior-year quarter's $0.26 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 41.8%, 370 basis points better than the prior-year quarter. Operating margin was -2.3%, much worse than the prior-year quarter. Net margin was 8.2%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $123.6 million. On the bottom line, the average EPS estimate is $0.73.
Next year's average estimate for revenue is $342.4 million. The average EPS estimate is $1.31.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 614 members out of 633 rating the stock outperform, and 19 members rating it underperform. Among 126 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 125 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 $27.50.
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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 recommends AeroVironment. The Motley Fool owns shares of 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.