AeroVironment Fiscal Q1 Results – Revenues Up 62%

AeroVironment has just reported its fiscal first-quarter results. The firm saw revenue climb 62% year over year to $62 million, driven by a 56% increase in its core UAS segment and a 105% growth in the smaller efficient energy systems business. This latter segment jumped to 16% of quarterly revenue from 12.5% a year ago and 14.6% in all of fiscal 2011.

For the full year, management still expects consolidated revenue growth at a sharply slower rate in the range of 10% to 15%  due to more difficult year-over-year comparisons. Still, this guidance suggests the firm believes it will see more than 80% of the year’s revenue in the remaining nine months, indicating sequential revenue growth as the year progresses.

The company’s profitability also improved sharply from the loss posted in the first quarter a year ago, with operating margins at roughly break-even. As AeroVironment’s revenue increases over the remainder of the year, margins are expected to follow suit, likely climbing to the low-double-digit range for the full year. The company has a strong balance sheet, which features zero debt and nearly $8.50 per share in cash and short-term investments. Although the defense industry could see funding issues stemming from government austerity measures, a pipeline of new opportunities and a likely continued long-term push toward high-tech military offerings bodes well for AeroVironment.

Source: The Toronto Star

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