Overview

  • U.S. defense tech firm's fiscal Q4 revenue more than doubled yr/yr, driven by acquisitions

  • Adjusted EPS for fiscal Q4 beat analyst expectations

  • Gross margin fell to 32% from 36%, mainly due to higher service revenue and amortization

Outlook

  • AeroVironment expects fiscal 2027 revenue between $2.125 bln and $2.225 bln

  • Company sees fiscal 2027 net income of $8 mln to $24 mln

  • AeroVironment forecasts fiscal 2027 non-GAAP adj EBITDA of $305 mln to $325 mln

Result Drivers

  • ACQUISITIONS - BlueHalo and Empirical Systems Aerospace acquisitions contributed $282.3 mln to Q4 revenue

  • HIGHER PRODUCT AND SERVICE SALES - Q4 revenue rose due to an increase in product sales of $256.7 mln and an increase in service revenue of $109.8 mln YoY

  • GROSS MARGIN PRESSURE - Gross margin percentage fell due to increased service revenue mix and higher amortization expenses

Company press release:

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Adjusted EPS

Beat

$1.84

$1.46 (16 Analysts)

Q4 Gross Margin

32%

Q4 Operating Income

$56.90 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the aerospace & defense peer group is "buy"

  • Wall Street's median 12-month price target for AeroVironment Inc is $300.00, about 117.5% above its June 26 closing price of $137.95

  • The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 58 three months ago

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