Why AeroVironment Stock Popped More than 31% This Morning

Wednesday is turning out to be a very good day to own stock in drone maker AeroVironment (NASDAQ: AVAV) -- but a very bad day to be a client of Spruce Point Capital.

Last month as you probably recall, short-seller Spruce Point Capital publicly trashed AeroVironment stock, accusing the company of "poor governance," "unjust insider enrichment," and "frequent accounting errors" -- and weak free cash flow to boot. Spruce Point called AV's valuation "nonsensical and distorted," predicted AeroVironment stock would come crashing down to earth, and told investors to sell it.

Instead, AeroVironment stock is soaring this morning -- up 32.8% as of 11:35 a.m. EST. This astounding performance comes in response to a fiscal second-quarter 2018 earnings report that showed AV walloping analyst estimates with earnings of $0.29 per share (a seven-cent loss was expected) on sales of $73.8 million (versus expectations of $63.9 million).

Source: Fool.com