AeroVironment (AVAV - Free Report) reported break-even second-quarter fiscal 2023 earnings per share, missing the Zacks Consensus Estimate of earnings of 22 cents per share. The company reported earnings of 78 cents in the year-ago quarter.
Total Revenues
The company’s net sales decreased 9% year over year to $111.6 million in the reported quarter. This was primarily driven by a decrease in product sales of $8.7 million and service revenues of $1.8 million.
Total sales missed the Zacks Consensus Estimate marginally by 3.4%.
Segmental Performance
Product Sales: Net revenues in this segment decreased 12.1% to $62.3 million from the prior-year quarter’s $70.9 million.
Contract Services: The segment’s revenues amounted to $49.2 million in the second quarter, reflecting a decline of 3.5% year over year.
Backlog
At the end of the reported quarter, AVAV’s total funded backlog was $293.1 million, up 44.3% quarter over quarter.
AeroVironment reported a gross profit that declined 39% year over year to $25.9 million, primarily due to the lower product margin of $9.2 million and the lower service margin of $7.4 million. The gross margin expanded 120 basis points to 23% from the prior-year period.
Operational Update
AeroVironment’s total costs and expenses increased 2.8% year over year to $40.2 million in the quarter under review. The increase was due to higher research and development expenses, partially offset by lower SG&A expenses.
The company reported an operating loss of $14.3 million against the operating income of $3.3 million in the prior-year period.
Financial Details
As of Oct 29, 2022, AVAV’s cash and cash equivalents totaled $101.4 million compared with $77.2 million as of Apr 30, 2022. Cash flow used in operating activities was $31.9 million at the end of the second quarter of fiscal 2023 compared to cash outflow from operating activities of $3.3 million in the prior-year period.
AeroVironment reported long-term debt (net of current maturities) of $155.6 million as of Oct 29, 2022, down from $177.8 million as of Apr 30, 2022.
2023 Guidance
AeroVironment updated its view for fiscal 2023. The company now expects non-GAAP earnings in the range of $1.26-$1.58 per diluted share compared with the previously guided range of $1.35-$1.65 per diluted share. The Zacks Consensus Estimate for fiscal 2023 earnings is pegged at $1.37 per share, lower than the midpoint of the company’s projected view.
The company raised its revenue guidance from the previous range of $490-$520 million to the $505-$525 band for fiscal 2023. The Zacks Consensus Estimate for fiscal 2023 revenues stands at $518.9 million, slightly higher than the midpoint of the company’s guided range.
AeroVironment’s non-GAAP adjusted EBITDA is anticipated between $84 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
Teledyne Technologies Inc. (TDY - Free Report) reported third-quarter 2022 adjusted earnings of $4.54 per share, which surpassed the Zacks Consensus Estimate of $4.30 by 5.6%. The bottom line improved 4.6% from the year-ago quarter’s $4.34 per share.
Total sales in the third quarter amounted to $1,363.3 million, which came in line with the Zacks Consensus Estimate. The top line improved 3.9% from the $1,311.9 million reported a year ago.
Raytheon Technologies Corporation’s (RTX - Free Report) third-quarter 2022 adjusted earnings per share of $1.21 beat the Zacks Consensus Estimate of $1.11 by 9%. However, the bottom line dropped 4% from the year-ago quarter’s adjusted earnings of $1.26.
Raytheon Technologies’ third-quarter sales of $16,951 million missed the Zacks Consensus Estimate of $17,003 million by 0.3%. However, the sales figure rose 5% from the $16,213 million recorded in the year-ago quarter.
Hexcel Corporation (HXL - Free Report) reported third-quarter 2022 adjusted earnings of 33 cents per share, which exceeded the Zacks Consensus Estimate of 32 cents by 3.1%. The bottom line improved massively from the year-ago earnings of 8 cents per share, reflecting growth of a solid 153.8%.
Hexcel’s net sales totaled $364.7 million in the third quarter, which lagged the Zacks Consensus Estimate of $391 million by 6.8%. However, the top line witnessed an improvement of 9.3% from the year-ago quarter’s $333.8 million.
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AeroVironment (AVAV - Free Report) reported break-even second-quarter fiscal 2023 earnings per share, missing the Zacks Consensus Estimate of earnings of 22 cents per share. The company reported earnings of 78 cents in the year-ago quarter.
Total Revenues
The company’s net sales decreased 9% year over year to $111.6 million in the reported quarter. This was primarily driven by a decrease in product sales of $8.7 million and service revenues of $1.8 million.
Total sales missed the Zacks Consensus Estimate marginally by 3.4%.
Segmental Performance
Product Sales: Net revenues in this segment decreased 12.1% to $62.3 million from the prior-year quarter’s $70.9 million.
Contract Services: The segment’s revenues amounted to $49.2 million in the second quarter, reflecting a decline of 3.5% year over year.
Backlog
At the end of the reported quarter, AVAV’s total funded backlog was $293.1 million, up 44.3% quarter over quarter.
AeroVironment reported a gross profit that declined 39% year over year to $25.9 million, primarily due to the lower product margin of $9.2 million and the lower service margin of $7.4 million. The gross margin expanded 120 basis points to 23% from the prior-year period.
Operational Update
AeroVironment’s total costs and expenses increased 2.8% year over year to $40.2 million in the quarter under review. The increase was due to higher research and development expenses, partially offset by lower SG&A expenses.
The company reported an operating loss of $14.3 million against the operating income of $3.3 million in the prior-year period.
Financial Details
As of Oct 29, 2022, AVAV’s cash and cash equivalents totaled $101.4 million compared with $77.2 million as of Apr 30, 2022. Cash flow used in operating activities was $31.9 million at the end of the second quarter of fiscal 2023 compared to cash outflow from operating activities of $3.3 million in the prior-year period.
AeroVironment reported long-term debt (net of current maturities) of $155.6 million as of Oct 29, 2022, down from $177.8 million as of Apr 30, 2022.
2023 Guidance
AeroVironment updated its view for fiscal 2023. The company now expects non-GAAP earnings in the range of $1.26-$1.58 per diluted share compared with the previously guided range of $1.35-$1.65 per diluted share. The Zacks Consensus Estimate for fiscal 2023 earnings is pegged at $1.37 per share, lower than the midpoint of the company’s projected view.
The company raised its revenue guidance from the previous range of $490-$520 million to the $505-$525 band for fiscal 2023. The Zacks Consensus Estimate for fiscal 2023 revenues stands at $518.9 million, slightly higher than the midpoint of the company’s guided range.
AeroVironment’s non-GAAP adjusted EBITDA is anticipated between $84 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
Teledyne Technologies Inc. (TDY - Free Report) reported third-quarter 2022 adjusted earnings of $4.54 per share, which surpassed the Zacks Consensus Estimate of $4.30 by 5.6%. The bottom line improved 4.6% from the year-ago quarter’s $4.34 per share.
Total sales in the third quarter amounted to $1,363.3 million, which came in line with the Zacks Consensus Estimate. The top line improved 3.9% from the $1,311.9 million reported a year ago.
Raytheon Technologies Corporation’s (RTX - Free Report) third-quarter 2022 adjusted earnings per share of $1.21 beat the Zacks Consensus Estimate of $1.11 by 9%. However, the bottom line dropped 4% from the year-ago quarter’s adjusted earnings of $1.26.
Raytheon Technologies’ third-quarter sales of $16,951 million missed the Zacks Consensus Estimate of $17,003 million by 0.3%. However, the sales figure rose 5% from the $16,213 million recorded in the year-ago quarter.
Hexcel Corporation (HXL - Free Report) reported third-quarter 2022 adjusted earnings of 33 cents per share, which exceeded the Zacks Consensus Estimate of 32 cents by 3.1%. The bottom line improved massively from the year-ago earnings of 8 cents per share, reflecting growth of a solid 153.8%.
Hexcel’s net sales totaled $364.7 million in the third quarter, which lagged the Zacks Consensus Estimate of $391 million by 6.8%. However, the top line witnessed an improvement of 9.3% from the year-ago quarter’s $333.8 million.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
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