Aerospace and defense company AeroVironment (NASDAQ:AVAV) will be announcing earnings results this Tuesday after market hours. Here’s what to expect.
AeroVironment beat analysts’ revenue expectations by 2.8% last quarter, reporting revenues of $454.7 million, up 140% year on year. It was a slower quarter for the company, with a significant miss of analysts’ adjusted operating income and EPS estimates.
Is AeroVironment a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting AeroVironment’s revenue to grow 150% year on year to $470.5 million, improving from the 4.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.80 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. AeroVironment has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 4% on average.
Looking at AeroVironment’s peers in the defense contractors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Mercury Systems delivered year-on-year revenue growth of 10.2%, beating analysts’ expectations by 9.5%, and Leidos reported revenues up 6.7%, topping estimates by 4.1%. Mercury Systems traded up 3.3% following the results while Leidos was also up 1%.
Read our full analysis of Mercury Systems’s results here and Leidos’s results here.
Investors in the defense contractors segment have had steady hands going into earnings, with share prices up 2% on average over the last month. AeroVironment is down 16.2% during the same time and is heading into earnings with an average analyst price target of $404.00 (compared to the current share price of $279.90).
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