Why AeroVironment Stock Is Gaining Altitude Today
After the closing bell Monday, AeroVironment (NASDAQ: AVAV) reported fiscal 2023 third-quarter earnings that came in below expectations, and management lowered its full-year view. But much of the issue was timing, and the drone maker sees robust demand up ahead. That upbeat outlook helped drive shares of AeroVironment up by as much as 10% on Tuesday morning.
AeroVironment is a maker of small to mid-sized unmanned aerial vehicles (UAVs) that have been a key piece of the assistance the United States has provided in support of the Ukrainian war effort. The war has demonstrated the effectiveness of AeroVironment's drones on the battlefield and raised the profile of the small defense stock.
The company reported revenue of $134.4 million in its fiscal third quarter, which ended Jan. 28, up 49% year over year and ahead of the $125 million consensus. But earnings of $0.33 per share came in short of the $0.41 per share consensus. Gross margin increased to 34% compared to 24% a year ago, but those gains were partially offset by increases in research and development and selling and administrative expenses.
Source Fool.com
