AeroVironment (AVAV) Reports Earnings Tomorrow: What To Expect

Aerospace and defense company AeroVironment (NASDAQ:AVAV) will be reporting results tomorrow after market close. Here’s what investors should know.

AeroVironment beat analysts’ revenue expectations by 4.2% last quarter, reporting revenues of $197 million, up 5.9% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ earnings and operating margin estimates.

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 21.8% year on year to $185.5 million, slowing from the 40.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.65 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 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. Leonardo DRS delivered year-on-year revenue growth of 19.9%, beating analysts’ expectations by 10.7%, and Mercury Systems reported a revenue decline of 1.8%, topping estimates by 7.8%. Leonardo DRS’s stock price was unchanged after the results, while Mercury Systems was up 17.6%.

Read our full analysis of Leonardo DRS’s results here and Mercury Systems’s results here.

There has been positive sentiment among investors in the defense contractors segment, with share prices up 6.6% on average over the last month. AeroVironment is up 24.1% during the same time and is heading into earnings with an average analyst price target of $225 (compared to the current share price of $203.7).

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