Drone and missile maker AeroVironment kicked off the first quarter of its 2025 fiscal year late Wednesday with a solid earnings beat but disappointing guidance. AVAV stock fell Thursday, reversing after an early morning jump.
AeroVironment reported earnings of 89 cents per share adjusted, down 11% from last year. Revenue jumped 24% to $189.5 million.
FactSet analysts expected earnings of 62 cents per share adjusted on $183.2 million in sales.
AeroVironment maintained its full-year earnings forecast of $3.18 to $3.49 per share adjusted, on $790 million to $820 million in sales. However, the guidance came up short of FactSet expectations for earnings of $3.50 per share and $841.5 million in revenue.
The results come after the Department of Defense last week awarded AeroVironment a $990 million contract for its Switchblade "suicide" drones. Baird and Alembic Global both upgraded AVAV stock on the news, to outperform and overweight ratings, respectively.
Arlington, Va.-based AeroVironment manufactures drones used by the Air Force for research and is reportedly the U.S. military's top drone supplier overall. It sells research aircraft to NASA and was contracted to codevelop portions of the flight systems for the Mars Sample Recovery Helicopter.
Meanwhile, AeroVironment is also involved in missile production. The company's Switchblade drones and the Puma hand-launched recon drone have both been deployed in Ukraine amid the war with Russia.
Outside of defense supplies and aircraft, AeroVironment also makes electric vehicle charging stations for homes.
AeroVironment Stock
AVAV stock surged more than 5% early Thursday, but quickly reversed and closed with a 5.3% decline. Shares climbed 0.9% to 194.04 in Wednesday's regular session.
AVAV stock has a handle with a 211.44 buy point. Prior to the report, AeroVironment was working p the right side of a cup base.
The drone maker has rallied nearly 46% in 2024.
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