AeroVironment Stock Surges 17% on Q4 Earnings Beat, $1.2B Backlog

AeroVironment stock surged 17% after the bell on Monday following the dronemaker's fourth-quarter earnings report that exceeded analyst expectations on both revenue and profit. The company reported earnings of $1.84 per share versus the $1.46 per share estimate from analysts polled by LSEG, while revenue more than doubled to $642 million compared to the $559 million analyst estimate. CEO Wahid Nawabi stated the company is well positioned to benefit from rising global demand in drones, counter-drones, and space technology, driven by recent conflicts that have brought drone warfare to the forefront of defense strategy.

AeroVironment Reports $1.2 Billion Funded Backlog and Revenue Growth

AeroVironment's funded backlog reached $1.2 billion, representing a 65% increase over last year, though only slightly above the $1.1 billion backlog reported in the prior period. The company's autonomous systems revenue of $492 million exceeded the StreetAccount expectation of $402 million.

CEO Nawabi Attributes Growth to Changing Warfare Fundamentals

During an exclusive tour of the company's Simi Valley, California facility with CNBC's Morgan Brennan, Nawabi stated that recent conflicts in Ukraine and Iran have fundamentally changed warfare dynamics. "We knew that this inflection point was going to happen sooner or later, and these last couple of conflicts that have become globally well known has essentially brought this thing to the forefront," Nawabi said.

FAQ

What earnings results did AeroVironment report for the fourth quarter?

AeroVironment reported fourth-quarter earnings of $1.84 per share, beating the analyst estimate of $1.46 per share. Revenue more than doubled to $642 million versus the $559 million analyst estimate.

How large is AeroVironment's current funded backlog?

AeroVironment's funded backlog stands at $1.2 billion, representing a 65% increase over last year and slightly above the prior period's $1.1 billion backlog.

What did AeroVironment's CEO say about the company's market position?

CEO Wahid Nawabi stated that AeroVironment is well positioned to benefit from rising global demand in drones, counter-drones, and space technology, citing recent conflicts in Ukraine and Iran as factors that have brought drone warfare to the forefront of defense strategy.