AeroVironment Inc (NASDAQ:AVAV)
On Tuesday December 5th, 2017, AeroVironment reported their fiscal second quarterly earnings after the market closes at 4 p.m. immediately afterward, shares skyrocketed higher.
It seems as though many traders and investors were caught flat-footed when the company announced stellar earnings compared to a loss in the year-ago quarter.
The company is a major manufacturer of unmanned aircraft for commonly known as drones. Shares closed the regular trading session at $43.25 which was down -$0.75 on the day. However, in the after market, shares closed at $53.00, up +$9.75 or 22.5%.
The Numbers
Earnings came in at $0.29 per common share on a diluted basis. This compares with losing -$0.18 in the same period a year ago. Revenue came in at +$73.8 million which was an increase of nearly +47% from the quarter a year ago.
Company Comments
Wahid Nawabi, AeroVironment Chief Executive Officer had this to say to investors:
“Our outstanding team delivered another solid quarter of financial and operational results driven by robust, global customer demand across our business and continued effective execution. During the quarter we increased revenue by 47 percent, year over year, and substantially improved earnings per diluted share to $0.29. Our innovative solutions continue to lead their markets, as orders for products and customer-funded research and development programs boosted our funded backlog to $127 million, a 49 percent increase over last quarter, significantly increasing our revenue visibility for the current fiscal year.”
“Additionally, in August the United States Army released its annual Superior Supplier Incentive Program ranking, which identifies its top performing industry partners for 2017. AeroVironment earned the Army’s top tier in this year’s ranking, based on superior performance in our small UAS and Tactical Missile Systems businesses. This recognition is a testament to the hard work and dedication of our entire team. Our strong second quarter results reflect continued momentum in fiscal 2018 as we execute our plan effectively and focus on creating value for our stockholders, employees and customers.”
The Chart
Above you will see the price chart for AVAV. On the left is the regular trading session, and on the right is the explosive move up in the after-hours session.
Company Profile
AeroVironment, Inc. designs, develops, produces, supports, and operates unmanned aircraft systems (UAS) and efficient energy systems (EES) in the United States and internationally. The company offers small UAS products to deliver intelligence, surveillance, and reconnaissance; and communications, such as real-time tactical reconnaissance, tracking, combat assessment, and geographic data to the small tactical unit or individual operator.
Its small UAS wirelessly transmit critical live video and other information to a hand-held ground control unit enabling the operator to view and capture images; ground control systems allow the operator to control the aircraft; and tactical missile systems designed to be reusable for various flights and to be recovered through an autonomous landing feature that enables a controlled descent to a designated location.
The company also provides spare equipment, alternative payload modules, batteries, and chargers; repair, refurbishment and replacement, training, and customer support services to small UAS; turnkey information solutions; and engineering services.
In addition, it offers electric vehicle charging systems, services, and related solutions for plug-in passenger vehicles; PosiCharge industrial electric vehicle charging systems for electric material handling vehicles and airport ground support equipment; and power cycling and test systems for developers and manufacturers of electric vehicles, as well as battery packs, electric motors, and fuel cells.
The company sells EES products directly through sales force; and through retailers, resellers, industrial battery and lift-truck dealers, and distributors and representatives.
It serves the U.S. Department of Defense, including the U.S. Army, Marine Corps, Special Operations Command, Air Force, and Navy, as well as commercial, consumer, and government customers. The company was founded in 1971 and is headquartered in Monrovia, California.-