Defence technology company AeroVironment missed estimates last quarter despite a spike in revenue, with its operating loss widening after a series of charges.
Earnings per share were US$0.64 in the quarter to 31 January, up from $0.30 one year ago but below Zacks consensus estimates of $0.68. Revenue was $408.05 million, surging from $167.64 million but missing estimates by 13.73%.
“While our third quarter results were impacted by revenue timing and adjustments in our Space business, demand for our unique solutions remains robust,” said CEO Wahid Nawabi.
“Strong order flow and growth in funded backlog during the quarter are setting the stage for record fourth quarter revenue and a solid start to fiscal year 2027. We are executing with discipline, scaling manufacturing ahead of demand and accelerating the commercialization of our platforms to improve profitability and time to market.”
Product sales revenue was $277.81 million, climbing from $139.75 million. Contract services revenue rose to $130.23 million, from $27.88 million.
AeroVironment’s Autonomous Systems segment’s revenue was $278.7 million, while Space, Cyber and Directed Energy revenue was $129.3 million. Its purchase of defence company BlueHalo last year contributed $84.1 million to product revenue and $91.4 million to service revenue.
The company’s backlog was $1.1 billion, rising from $726.6 million at the start of its fiscal year on 30 April. The United States Space Force terminated a $1.7 billion contract with Aerovironment to build military satellite antennas during the quarter.
Its operating loss was $179.0 million, widening from $3.1 million a year ago. This was due to a goodwill impairment of $151.3 million and an increase in administrative expenses related to the BlueHalo acquisition, the company said.
The United States Space Force terminated a $1.7 billion contract with Aerovironment to build military satellite antennas during the quarter, with the company lowering its full-year guidance.
It expects revenue of $1.85-1.95 billion across its fiscal year and adjusted earnings per share of $2.75-3.10. FactSet estimates included $1.96 billion in full-year revenue and $3.31 in earnings per share.
AeroVironment (NASDAQ: AVAV) shares closed 6.3% lower at $207.73, and sank a further 0.6% after-hours. Its market capitalisation is $10.37 billion.
