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Shares in drone maker AeroVironment soar amid mixed quarterly earnings

Published 06/30/2015, 06:18 PM
Updated 06/30/2015, 06:24 PM
© Reuters.  Drone maker AeroVironment saw its shares surge more than 4% in after-hours trading
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Investing.com -- Shares in AeroVironment Inc (NASDAQ:AVAV) surged more than 4% in after-hours trading, after the California-based drone manufacturer posted mixed earnings for its previous quarter on Tuesday.

AeroVironment, a Monrovia-based company primarily involved in the manufacturing of energy systems, electric vehicle systems and unmanned aerial vehicles, saw its revenues surge 17.6% for its fourth quarter that ended in late-April to $86.5 million. The revenues were just above analysts' forecasts of $85.7 million for the period, amid increases in unmanned aerial sales by nearly $19 million.

At the same time, the company's gross margin rose by roughly 50% to $45.4 million, increasing as a percentage of revenue from 41 to 52% on a year-over-year basis.

"Fourth quarter revenue of $86 million increased by 18 percent and gross profit increased by 50 percent year-over-year. During the quarter, we strengthened our market positions, moved key programs forward to generate value, and focused on innovation," AeroVironment CEO Tim Conver said in a statement. "Throughout fiscal year 2015, our strategic investments helped expand our growth portfolio and position AeroVironment for new market opportunities. In our core business, our team delivered revenue in-line with our expectations and exceeded targeted profitability."

Still, the company's quarterly profits fell from $8.1 million or 0.35 per share during the fourth quarter in 2014 to $7.1 million or 0.31 per share in the fourth quarter of 2015, as sales from its Efficient Energy Systems (EES) unit decreased by almost $6 million.

In terms of forward guidance, AeroVironment expects to earn revenue between $260 and $280 million in fiscal year 2016, in line with analysts' forecasts of $277 million.

Shares in AeroVironment gained 1.07 or 4.10 in after-hours trading to 27.15.

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