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AeroVironment (AVAV) Q2 Earnings & Sales Miss Estimates
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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%.
AeroVironment, Inc. Price, Consensus and EPS Surprise
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.
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) Q2 Earnings & Sales Miss Estimates
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%.
AeroVironment, Inc. Price, Consensus and EPS Surprise
AeroVironment, Inc. price-consensus-eps-surprise-chart | AeroVironment, Inc. Quote
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.