The 10-second takeaway
For the quarter ended April 30 (Q4), AeroVironment beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. GAAP earnings per share shrank to a loss.
Margins dropped across the board.
AeroVironment tallied revenue of $54.1 million. The 12 analysts polled by S&P Capital IQ predicted revenue of $51.3 million on the same basis. GAAP reported sales were 51% lower than the prior-year quarter's $110.7 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 -$0.04. The nine earnings estimates compiled by S&P Capital IQ forecast -$0.07 per share. GAAP EPS were -$0.04 for Q4 compared to $0.79 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 32.8%, much worse than the prior-year quarter. Operating margin was -11.0%, much worse than the prior-year quarter. Net margin was -1.5%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $49.6 million. On the bottom line, the average EPS estimate is -$0.05.
Next year's average estimate for revenue is $247.5 million. The average EPS estimate is $0.56.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 626 members out of 649 rating the stock outperform, and 23 members rating it underperform. Among 130 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 127 give AeroVironment a green thumbs-up, and three 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 $20.22.
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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.