AeroVironment (NASDAQ:AVAV) Releases Earnings Results, Beats Estimates By $0.37 EPS

AeroVironment (NASDAQ:AVAV) posted its earnings results on Monday. The aerospace company reported $1.84 earnings per share for the quarter, beating analysts’ consensus estimates of $1.47 by $0.37, FiscalAI reports. AeroVironment had a negative net margin of 9.00% and a positive return on equity of 3.72%. The firm had revenue of $641.62 million during the quarter, compared to analyst estimates of $555.97 million. During the same period last year, the firm posted $1.61 earnings per share. AeroVironment’s revenue for the quarter was up 133.3% compared to the same quarter last year. AeroVironment updated its FY 2027 guidance to 3.020-3.340 EPS.

Here are the key takeaways from AeroVironment’s conference call:

• AV reported record Q4 and full-year FY2026 results, including $642 million in quarterly revenue, nearly $2 billion in annual revenue, $2.7 billion in bookings, and adjusted EBITDA of $286 million, all ahead of or above guidance.
• The company issued FY2027 guidance for revenue of $2.125 billion-$2.225 billion and adjusted EBITDA of $305 million-$325 million, implying continued growth despite timing uncertainty in government funding.
• Management highlighted a major portfolio expansion after the BlueHalo acquisition, with strength in counter-UAS, space technologies, cyber, and directed energy, while acknowledging some near-term disruption from the SCAR contract termination and government shutdown-related delays.
• Several programs won or advanced meaningful awards, including P550 for Army long-range reconnaissance, VAPOR CLE for medium-range reconnaissance, Switchblade 400 under LASSO, Red Dragon production contracts, and progress on Freedom Eagle-1 and LOCUST.
• Management disclosed an $89 million goodwill impairment tied to the SCAR program termination and said a related material weakness in internal controls was identified and is being remediated.

AeroVironment Stock Up 18.8%

Shares of NASDAQ:AVAV opened at $165.07 on Wednesday. AeroVironment has a 52-week low of $135.20 and a 52-week high of $417.86. The stock has a market cap of $8.24 billion, a P/E ratio of -44.86, a price-to-earnings-growth ratio of 1.79 and a beta of 1.35. The business’s 50 day moving average is $176.12 and its 200 day moving average is $224.64. The company has a quick ratio of 4.54, a current ratio of 5.51 and a debt-to-equity ratio of 0.17.

Key Stories Impacting AeroVironment

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: AVAV reported a major earnings and revenue beat, driven by surging defense and drone demand, which is supporting a higher stock price. AeroVironment (AVAV) Shares Skyrocket, What You Need To Know
• Positive Sentiment: Record bookings and a $1.2 billion funded backlog suggest continued demand and visibility for future growth. AeroVironment Announces Fiscal 2026 Fourth Quarter and Fiscal Year Results
• Neutral Sentiment: FY2027 guidance was below some analyst expectations, which may limit upside if investors focus on the outlook rather than the strong quarter. Why Wall Street Still Sees Massive Upside for AeroVironment Stock
• Negative Sentiment: Multiple law firms announced class action lawsuits and deadlines tied to the SCAR contract cancellation, creating a legal overhang for AVAV shares. Pomerantz Law Firm Announces the Filing of a Class Action Against AeroVironment, Inc. and Certain Officers – AVAV

Insiders Place Their Bets

In other AeroVironment news, Director Stephen F. Page sold 250 shares of the company’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $174.41, for a total value of $43,602.50. Following the completion of the sale, the director directly owned 49,001 shares in the company, valued at approximately $8,546,264.41. This represents a 0.51% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 750 shares of company stock worth $133,502. Insiders own 0.81% of the company’s stock.

Institutional Trading of AeroVironment

Hedge funds and other institutional investors have recently bought and sold shares of the stock. National Bank of Canada FI increased its holdings in shares of AeroVironment by 230.3% in the 3rd quarter. National Bank of Canada FI now owns 109 shares of the aerospace company’s stock valued at $34,000 after acquiring an additional 76 shares during the period. Kemnay Advisory Services Inc. purchased a new stake in AeroVironment during the fourth quarter valued at approximately $40,000. Banque Cantonale Vaudoise purchased a new stake in AeroVironment during the third quarter valued at approximately $44,000. EverSource Wealth Advisors LLC boosted its stake in AeroVironment by 5,200.0% in the second quarter. EverSource Wealth Advisors LLC now owns 159 shares of the aerospace company’s stock valued at $45,000 after acquiring an additional 156 shares in the last quarter. Finally, Parkside Financial Bank & Trust boosted its stake in AeroVironment by 29.7% in the fourth quarter. Parkside Financial Bank & Trust now owns 188 shares of the aerospace company’s stock valued at $45,000 after acquiring an additional 43 shares in the last quarter. Institutional investors own 86.38% of the company’s stock.

Wall Street Analysts Forecast Growth

AVAV has been the subject of a number of recent research reports. Robert W. Baird dropped their price objective on shares of AeroVironment from $260.00 to $235.00 and set an “outperform” rating for the company in a research note on Wednesday, March 11th. Weiss Ratings restated a “sell (d)” rating on shares of AeroVironment in a research report on Monday, June 8th. Canaccord Genuity Group lowered their price target on shares of AeroVironment from $330.00 to $300.00 and set a “buy” rating for the company in a report on Thursday, March 12th. Zacks Research raised AeroVironment from a “strong sell” rating to a “hold” rating in a research report on Monday, May 4th. Finally, Piper Sandler lowered their price target on AeroVironment from $290.00 to $248.00 and set an “overweight” rating for the company in a research report on Friday, June 26th. Two equities research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $282.42.

About AeroVironment

AeroVironment, Inc (NASDAQ:AVAV) is a technology company specializing in unmanned aerial systems (UAS), tactical missiles and precision loitering munitions, electric vehicle charging and scalable energy systems. Headquartered in Monrovia, California, the company develops solutions for defense, public safety and commercial markets. Their offerings include small UAS for intelligence, surveillance and reconnaissance, as well as advanced weapons systems designed to meet the needs of modern military operations.

The company’s unmanned aerial systems portfolio features platforms such as the Raven, Puma and Switchblade series, which are deployed by the U.S.