AeroVironment (AVAV - Free Report) reported first-quarter fiscal 2023 loss of 10 cents per share, wider than the Zacks Consensus Estimate of a loss of 9 cents. The company had reported a loss of 17 cents in the year-ago quarter.
The year-over-year improvement can be attributed to a decrease in SG&A expenses and an increase in the gross margin in the quarter under review.
Total Revenues
The company’s net sales improved 7% year over year to $108.5 million in the reported quarter, primarily driven by an increase in service revenues of $2.6 million and product sales of $4.9 million.
Total sales surpassed the Zacks Consensus Estimate marginally by 3.42%.
Segmental Performance
Product Sales: Net revenues in this segment improved 9.1% to $57.9 million from the prior-year quarter’s $53.1 million.
Contract Services: The segment’s revenues amounted to $50.5 million in the first quarter, reflecting an increase of 5.5% year over year.
Backlog
At the end of the reported quarter, AVAV’s total funded backlog was $203.9 million, down 3.3% quarter over quarter.
AeroVironment's gross profit soared 17% year over year to $33.7 million, primarily due to a higher product margin of $4.5 million and a higher service margin of $0.4 million. The gross margin expanded 300 basis points to 31% from the prior-year period.
Operational Update
AeroVironment’s total costs and expenses decreased 9.6% year over year to $36.9 million in the quarter under review. The decrease was due to lower SG&A expenses, partially offset by higher research and development expenses.
The company reported an operating loss of $3.3 million compared with the operating loss of $12.1 million in the prior-year period.
Financial Details
As of Jul 30, 2022, AeroVironment’s cash and cash equivalents totaled $93.2 million compared with $77.2 million as of Apr 30, 2022.
Cash flow used in operating activities was $15.9 million at the end of the first quarter of fiscal 2023 compared to cash outflow from operating activities of $15.3 million in the prior-year period.
AeroVironment reported long-term debt (net of current maturities) of $175.5 million as of Jul 30, 2022, down from $177.8 million as of Apr 30, 2022.
2023 Guidance
AeroVironment reaffirmed its view for fiscal 2023. The company continues to expect non-GAAP earnings in the range of $1.35-$1.65 per diluted share. The Zacks Consensus Estimate for 2022 earnings is pegged at $1.42 per share, lower than the midpoint of the company’s projected view.
The company anticipates revenues in the range of $490-$520 million this year, unchanged from the previous guidance. The Zacks Consensus Estimate for fiscal 2023 revenues stands at $520.7 million, higher than the midpoint of the company’s guided range.
The company’s non-GAAP adjusted EBITDA is anticipated between $82 million and $92 million.
Zacks Rank
AeroVironment currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Defense Releases
Lockheed Martin (LMT - Free Report) reported second-quarter 2022 earnings of $6.32 per share, which surpassed the Zacks Consensus Estimate of $6.29 by 0.5%. However, the bottom line declined 1.6% year over year.
Lockheed Martin’s top line declined 9.3% from $17.03 billion reported in the year-ago quarter. LMT ended the second quarter of 2022 (on Jun 26, 2022) with $134.64 billion in the backlog compared with $135.23 billion at the end of the first quarter of 2022.
AAR Corp. (AIR - Free Report) reported fourth-quarter fiscal 2022 adjusted earnings of 72 cents per share, which surpassed the Zacks Consensus Estimate of 68 cents by 5.9%. Earnings surged a solid 53.2% from the year-ago quarter.
AAR generated net sales worth $476.1 million, which improved 8.8% from the $437.6 million recorded in the year-ago quarter. AIR’s cash and cash equivalents amounted to $53.5 million as of May 31, 2022 compared with $51.8 million as of May 31, 2021.
Raytheon Technologies’ (RTX - Free Report) second-quarter 2022 adjusted earnings per share (EPS) of $1.16 beat the Zacks Consensus Estimate of $1.12 by 3.6%. Moreover, the bottom line improved 13% from the year-ago quarter’s adjusted earnings of $1.03.
Raytheon Technologies had cash and cash equivalents of $4,767 million as of Jun 30, 2022 compared with $7,832 million as of Dec 31, 2021. RTX projects the 2022 adjusted EPS in the range of $4.60-$4.80.
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AeroVironment (AVAV - Free Report) reported first-quarter fiscal 2023 loss of 10 cents per share, wider than the Zacks Consensus Estimate of a loss of 9 cents. The company had reported a loss of 17 cents in the year-ago quarter.
The year-over-year improvement can be attributed to a decrease in SG&A expenses and an increase in the gross margin in the quarter under review.
Total Revenues
The company’s net sales improved 7% year over year to $108.5 million in the reported quarter, primarily driven by an increase in service revenues of $2.6 million and product sales of $4.9 million.
Total sales surpassed the Zacks Consensus Estimate marginally by 3.42%.
Segmental Performance
Product Sales: Net revenues in this segment improved 9.1% to $57.9 million from the prior-year quarter’s $53.1 million.
Contract Services: The segment’s revenues amounted to $50.5 million in the first quarter, reflecting an increase of 5.5% year over year.
Backlog
At the end of the reported quarter, AVAV’s total funded backlog was $203.9 million, down 3.3% quarter over quarter.
AeroVironment's gross profit soared 17% year over year to $33.7 million, primarily due to a higher product margin of $4.5 million and a higher service margin of $0.4 million. The gross margin expanded 300 basis points to 31% from the prior-year period.
Operational Update
AeroVironment’s total costs and expenses decreased 9.6% year over year to $36.9 million in the quarter under review. The decrease was due to lower SG&A expenses, partially offset by higher research and development expenses.
The company reported an operating loss of $3.3 million compared with the operating loss of $12.1 million in the prior-year period.
Financial Details
As of Jul 30, 2022, AeroVironment’s cash and cash equivalents totaled $93.2 million compared with $77.2 million as of Apr 30, 2022.
Cash flow used in operating activities was $15.9 million at the end of the first quarter of fiscal 2023 compared to cash outflow from operating activities of $15.3 million in the prior-year period.
AeroVironment reported long-term debt (net of current maturities) of $175.5 million as of Jul 30, 2022, down from $177.8 million as of Apr 30, 2022.
2023 Guidance
AeroVironment reaffirmed its view for fiscal 2023. The company continues to expect non-GAAP earnings in the range of $1.35-$1.65 per diluted share. The Zacks Consensus Estimate for 2022 earnings is pegged at $1.42 per share, lower than the midpoint of the company’s projected view.
The company anticipates revenues in the range of $490-$520 million this year, unchanged from the previous guidance. The Zacks Consensus Estimate for fiscal 2023 revenues stands at $520.7 million, higher than the midpoint of the company’s guided range.
The company’s non-GAAP adjusted EBITDA is anticipated between $82 million and $92 million.
Zacks Rank
AeroVironment currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Defense Releases
Lockheed Martin (LMT - Free Report) reported second-quarter 2022 earnings of $6.32 per share, which surpassed the Zacks Consensus Estimate of $6.29 by 0.5%. However, the bottom line declined 1.6% year over year.
Lockheed Martin’s top line declined 9.3% from $17.03 billion reported in the year-ago quarter. LMT ended the second quarter of 2022 (on Jun 26, 2022) with $134.64 billion in the backlog compared with $135.23 billion at the end of the first quarter of 2022.
AAR Corp. (AIR - Free Report) reported fourth-quarter fiscal 2022 adjusted earnings of 72 cents per share, which surpassed the Zacks Consensus Estimate of 68 cents by 5.9%. Earnings surged a solid 53.2% from the year-ago quarter.
AAR generated net sales worth $476.1 million, which improved 8.8% from the $437.6 million recorded in the year-ago quarter. AIR’s cash and cash equivalents amounted to $53.5 million as of May 31, 2022 compared with $51.8 million as of May 31, 2021.
Raytheon Technologies’ (RTX - Free Report) second-quarter 2022 adjusted earnings per share (EPS) of $1.16 beat the Zacks Consensus Estimate of $1.12 by 3.6%. Moreover, the bottom line improved 13% from the year-ago quarter’s adjusted earnings of $1.03.
Raytheon Technologies had cash and cash equivalents of $4,767 million as of Jun 30, 2022 compared with $7,832 million as of Dec 31, 2021. RTX projects the 2022 adjusted EPS in the range of $4.60-$4.80.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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