AeroVironment soars 17% on earnings beat, backlog grows to $1.2 billion

AeroVironment's shares surged by 17% in after-hours trading on Monday following an impressive report of its fourth-quarter earnings, which exceeded both revenue and profit expectations. The drone manufacturer announced earnings of $1.84 per share, significantly higher than the $1.46 anticipated by analysts surveyed by LSEG. In addition to its earnings success, AeroVironment's revenue soared to $642 million, more than doubling the previous year's figures and surpassing the analyst estimate of $559 million. CEO Wahid Nawabi expressed confidence in the company's strategic positioning to leverage the increasing global demand for drones, counter-drone technologies, and advancements in space technology. The company's funded backlog now stands at $1.2 billion, reflecting a remarkable 65% increase from the previous year. This figure is slightly above the $1.1 billion backlog reported in the prior quarter. Notably, revenue from autonomous systems reached $492 million, exceeding the StreetAccount expectation of $402 million. During a recent exclusive tour of AeroVironment’s facility in Simi Valley, California, Nawabi discussed the evolving landscape of modern warfare, particularly in light of recent conflicts in Ukraine and Iran. He noted, "We anticipated this shift would occur eventually, and the visibility of these recent conflicts has undoubtedly brought these challenges to the forefront of military strategy."