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AeroVironment (AVAV) Q1 Earnings Beat Estimates, Sales Rise Y/Y

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AeroVironment(AVAV - Free Report) delivered earnings per share (EPS) of $1 for the first quarter of fiscal 2024, beating the Zacks Consensus Estimate of 40 cents per share by 150%. The company reported a significant improvement from a loss of 8 cents in the prior-year period.

Total Revenues

The company’s net sales increased 40% year over year to $152.3 million in the reported quarter. This was primarily driven by higher shipments across all business segments. Total sales surpassed the Zacks Consensus Estimate by 11.2%.

AeroVironment, Inc. Price, Consensus and EPS Surprise

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 increased 106.1% to $119.5 million from the prior-year quarter’s $57.9 million.

Contract Services:The segment’s revenues amounted to $32.9 million in the first quarter, reflecting a decline of 34.9% year over year.

Backlog

At the end of the reported quarter, AeroVironment’s total funded backlog was $539.7 million, up 27.3% quarter over quarter.

AeroVironment reported a gross profit that increased 95% year over year to $65.7 million, primarily due to the higher product margin of $32.8 million.

Financial Details

As of Jul 29, 2023, AVAV’s cash and cash equivalents totaled $105.9 million compared with $132.9 million as of Apr 30, 2023.

Cash flow used in operating activities was $17.1 million at the end of the first quarter of fiscal 2024 compared with cash inflow from operating activities of $15.9 million in the prior-year period.

AeroVironment had long-term debt (net of current maturities) of $118.5 million as of Jul 29, 2023, down from $125.9 million as of Apr 30, 2023.

2024 Guidance

AeroVironment reaffirmed its earnings view for fiscal 2024. The company continues to expect non-GAAP earnings in the range of $2.30-$2.60 per share. The Zacks Consensus Estimate for fiscal 2024 earnings is pegged at $2.79 per share, higher than the midpoint of the company’s projected view.

AVAV’s revenue guidance now lies in the range of $645-$675 million, up from the prior expectation of $630-$660 million. The Zacks Consensus Estimate for fiscal 2024 revenues is pinned at $666.2 million, higher than the midpoint of the company’s guided range.

AeroVironment’s non-GAAP adjusted EBITDA is anticipated between $117 million and $127 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

HEICO Corporation’s (HEI - Free Report) third-quarter fiscal 2023 EPS of 77 cents beat the Zacks Consensus Estimate of 74 cents by 4.1%. The bottom line also improved by 28.3% from the prior-year period’s 60 cents.

The company’s net sales increased 27% year over year to $722.9 million in the reported quarter, primarily driven by an improvement in the commercial aerospace market. Total sales also beat the Zacks Consensus Estimate of $697 million by 3.7%.

Lockheed Martin (LMT - Free Report) reported second-quarter 2023 adjusted earnings of $6.73 per share, which surpassed the Zacks Consensus Estimate of $6.43 by 4.7%. The bottom line also improved 6.5% from the year-ago quarter's figure.

Net sales amounted to $16.69 billion in the reported quarter, which surpassed the Zacks Consensus Estimate of $15.86 billion by 5.3%. The top line rose 8.1% from $15.45 billion in the year-ago quarter.

AAR Corp. (AIR - Free Report) reported fourth-quarter fiscal 2023 adjusted earnings of 83 cents per share, which surpassed the Zacks Consensus Estimate of 77 cents by 7.8%. Earnings surged 15% from the year-ago quarter.

In the quarter under review, AAR generated net sales worth $553.3 million. The reported figure surpassed the Zacks Consensus Estimate by 4.5% and increased 16.5% from the $474.9 million recorded in the year-ago quarter.

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