AeroVironment stock plunges on earnings miss, lowered guidance

Published 04/03/2025, 22:20
AeroVironment stock plunges on earnings miss, lowered guidance

ARLINGTON, Va. - AeroVironment , Inc. (NASDAQ:AVAV) shares tumbled 16.1% after the unmanned aircraft systems manufacturer reported third-quarter earnings that fell short of analyst expectations and significantly lowered its full-year outlook.

The company posted adjusted earnings per share of $0.30 for the quarter ended January 25, missing the consensus estimate of $0.61. Revenue declined 10% YoY to $167.6 million, well below analysts’ projections of $195.62 million.

AeroVironment cited "short-term challenges" including unprecedented high winds and fires in Southern California that impacted its ability to meet goals. The weather events negatively affected revenue for the quarter.

"While this has been a transition year pivoting away from Ukraine demand, we still expect a strong fiscal year 2025 including record fourth quarter revenue," said CEO Wahid Nawabi.

For fiscal 2025, AeroVironment now forecasts revenue between $780 million and $795 million, down from its previous outlook and below the $836.2 million analysts were expecting. The company also reduced its full-year adjusted EPS guidance to a range of $2.92 to $3.13, compared to the consensus of $3.43.

Despite the disappointing results, AeroVironment highlighted some positive developments, including record orders for its Switchblade and Jump-20 systems that helped expand its backlog to $763.5 million. The company also announced a new manufacturing facility in Utah to boost production capacity.

"We made significant progress towards executing our long-term growth strategy and building resiliency for the future," Nawabi added.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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