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AeroVironment Reports Record Q2 Revenue, Maintains Guidance

AeroVironment's recent report indicates strong performance with record Q2 revenue of $188 million, driven by loitering munitions systems growth and a solid backlog. Adjusted earnings per share declined, reflecting increased expenses, yet the company reaffirms its fiscal year guidance, signaling confidence in continued growth.

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AI Rating:   7

AeroVironment's second quarter earnings call outlines several key financial aspects that may influence its stock price.

Revenue Growth

Revenue for the second quarter rose to $188 million, a record for the company, representing a 4% increase from the previous year. This growth is notable especially in the loitering munitions systems segment, which saw a 61% year-over-year increase in revenue, totaling around $78 million.

Net Income

The company reported net income of $7.5 million, a decrease from $17.8 million in the same quarter last year. This decline was attributed to increased SG&A and R&D expenses.

Profit Margins

Adjusted gross margins for the quarter were reported at 41%, down from 43% year-over-year. The expectation for adjusted gross margins for the second half of the year is between 38% and 40%.

Earnings Per Share (EPS)

The adjusted earnings per share came in at $0.47, a decline from $0.97 in the previous year, reflecting tightened profit margins and higher expenses.

Funded Backlog

AeroVironment's strong backlog grew to $467 million, indicating a healthy pipeline of future revenue opportunities.

This positive outlook regarding revenue growth and backlog, despite the drop in net income and EPS, suggests that AeroVironment is well-positioned for future growth, particularly as it continues to innovate in the defense sector with new products like the P550.

Stocks:  AVAV