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AeroVironment (AVAV) Beats on Q3 Earnings, Lifts '19 EPS View

AeroVironment, Inc . AVAV reported third-quarter fiscal 2019 earnings per share (EPS) from continuing operations of 35 cents, beating the Zacks Consensus Estimate of 14 cents by 150%. Earnings also improved by 37 cents from the year-ago quarter's net loss per share of 2 cents.

Operational Performance

Revenues of $75.3 million increased 38% on a year-over-year basis, driven by 26.8% improvement in product revenues to $50 million and improvement in service revenues of 66.6% to $25.3 million.

As of Jan 27, 2019, the company's funded backlog was $132.5 million, up 17% year over year.

Gross margin for the third quarter of fiscal 2019 was 40%, up 700 basis points year over year.

Total operating expenses increased 24.7% to $22.55 million, thanks to 27.6% rise in selling, general and administrative expenses and 22.4% in research and development expenses.

Consequently, operating income for the first nine months of fiscal 2019 was $7.8 million, an increase from $0.2 million reported in the same period last year.

AeroVironment, Inc. Price, Consensus and EPS Surprise

AeroVironment, Inc. Price, Consensus and EPS Surprise | AeroVironment, Inc. Quote

Financial Update

AeroVironment ended the reported quarter with cash and cash equivalents of $149.4 million, up from $143.5 million as of Apr 30, 2018.

Operating cash flow totaled $6.9 million at end of Jan 27, 2019, significantly down from $31.8 million at the end of Jan 27, 2018.

2019 Guidance

For fiscal 2019, the company expects to generate revenues from continuing operations of $300-$310 million.

The company raised full-year expectations for diluted earnings per share from continuing operations to $1.60-$1.80, including a one-time gain of $0.26 from a litigation settlement. The prior range stood at $1.30-$1.50 per share.

The company also continues to advance its growth portfolio, including exercising the one-time option to increase ownership of the HAPSMobile, Inc. joint venture from 5% to 10%.

Zacks Rank

AeroVironment currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Other Defense Releases

FLIR Systems Inc.'s FLIR fourth-quarter 2018 adjusted earnings of 62 cents per share surpassed the Zacks Consensus Estimate of 60 cents by 3.3%. The company carries a Zacks Rank #3 (Hold).

Textron TXT reported fourth-quarter 2018 adjusted earnings from continuing operations of $1.15 per share, which exceeded the Zacks Consensus Estimate of 98 cents by 17.3%. The company has a Zacks Rank #3.

Hexcel Corporation's HXL fourth-quarter 2018 adjusted earnings of 82 cents per share outpaced the Zacks Consensus Estimate of 80 cents by 2.5%. The company carries a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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