ARLINGTON, Virginia - AeroVironment , Inc. (NASDAQ:AVAV) saw its stock tumble 7.5% after the defense technology company issued weaker-than-expected guidance for the full fiscal year, overshadowing a revenue beat in its second quarter results.
The unmanned aircraft systems maker reported second quarter revenue of $188.5 million, up 4% YoY and surpassing analyst estimates of $177.06 million. However, adjusted earnings per share came in at $0.47, missing the $0.69 consensus forecast by a wide margin.
For fiscal year 2025, AeroVironment expects revenue between $790 million and $820 million, below the $828 million analyst consensus. The company's adjusted EPS guidance range of $3.18 to $3.49 was largely in line with estimates of $3.38.
"AeroVironment continues to deliver strong results, including record second-quarter revenue along with a healthy funded backlog that is 25% higher than the prior quarter," said Wahid Nawabi, AeroVironment's chairman, president and CEO.
The company's funded backlog rose to $467.1 million as of October 26, up from $400.2 million at the end of April. Revenue growth was driven by a 157% increase in the Loitering Munitions Systems segment, offset partially by a 35% decline in UnCrewed Systems.
AeroVironment also announced plans to acquire BlueHalo in an all-stock deal valued at approximately $4.1 billion, which it says will expand its portfolio in key defense and intelligence sectors.
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