Aerospace and defense company AeroVironment (NASDAQ: AVAV) will be reporting earnings this Tuesday after the bell. Here’s what to look for.
AeroVironment beat analysts’ revenue expectations by 12.9% last quarter, reporting revenues of $275.1 million, up 39.6% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.
Is AeroVironment a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting AeroVironment’s revenue to grow 133% year on year to $442.4 million, improving from the 24.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.34 per share.
The majority of analysts covering the company have 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 5.7% on average.
Looking at AeroVironment’s peers in the defense contractors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Mercury Systems delivered year-on-year revenue growth of 9.9%, beating analysts’ expectations by 11.9%, and BWX reported revenues up 12.1%, topping estimates by 7.2%. Mercury Systems traded up 26.7% following the results while BWX was also up 17.8%.
Read our full analysis of Mercury Systems’s results here and BWX’s results here.
There has been positive sentiment among investors in the defense contractors segment, with share prices up 6.1% on average over the last month. AeroVironment is down 7.3% during the same time and is heading into earnings with an average analyst price target of $298.73 (compared to the current share price of $226.60).
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