Just How High Can AeroVironment Fly?
Investors have looked closely at drone stocks for a long time, recognizing the valuable uses that aircraft without pilots onboard could serve in both military and civilian functions. AeroVironment (NASDAQ: AVAV) was one of the early pioneers of the drone industry, and one of the biggest frustrations that its shareholders have suffered over the years has been the slow pace at which the company has moved forward with its plans to make ground-controlled aerial vehicles part of mainstream aviation.
Coming into its fiscal first-quarter financial report earlier this month, AeroVironment investors wanted to see better results than the company had projected three months ago. AeroVironment did indeed have some reasons for its shareholders to be more optimistic, and that could bode well for the company's long-term prospects.
AeroVironment's fiscal first-quarter numbers were a breath of fresh air for many investors. Revenue jumped 11% from year-ago levels to $86.9 million, and that was a few percentage points stronger than most of those following the stock had anticipated. Net income of $17.1 million was down substantially year over year, but after taking into account the positive impact of a litigation settlement in last year's quarter, adjusted earnings from continuing operations of $0.74 per share were up $0.15 from where they were a year ago and also topped the consensus forecast among investors.
Source Fool.com
