Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

AeroVironment Falls 28% After Revenue Miss, Reduced Sales Outlook

Stock MarketsDec 08, 2021 07:40
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Sam Boughedda

Investing.com — AeroVironment Inc (NASDAQ:AVAV) stock plunged 29% Tuesday on the back of its fiscal second-quarter 2022 results. Despite reporting earnings above expectations, the message from the company was one of cautiousness, with revenue failing to match or beat the consensus.

"While we achieved second quarter and first-half results in line with our expectations, headwinds to our business have intensified in recent months, requiring us to reduce our full year outlook," said Wahid Nawabi, AeroVironment president and CEO.

AeroVironment announced adjusted earnings per share of 78 cents on revenue of $122 million. Analysts polled by Investing.com anticipated an adjusted EPS of 62 cents on revenue of $130.83 million.

The defense contractor, primarily involved in unmanned aerial vehicles, has seen its shares continuously slide since February this year, with today's fall to $56.70, exacerbating the decline.

There had been concerns about the company's performance in recent months due to a change in the competitive landscape. However, in October, RBC Capital analyst told investors that those concerns were overdone.

One of, if not, the primary driver for today's share price fall is the company lowering its 2022 sales outlook to between $440 million and $460 million, from the previous $560 million to $580 million. Furthermore, its forecasted EPS for the period was also lowered to between $1.23 and $1.37 from $2.50 to $2.70.

Nawabi said it was based on "the negative impact from supply chain delays, extended procurement cycles due to the global COVID-19 pandemic, slower decision making in Washington tied to Continuing Resolution related budget uncertainties and staffing shortages have prevented us from realizing the growth and bottom line results expected at the start of this fiscal year. We are diligently working to manage expenses and other challenges in light of our revised outlook but are realistic regarding the lack of visibility within this ongoing environment."

However, AeroVironment's CEO remains confident the company is well-positioned to deliver long-term shareholder value.

AeroVironment Falls 28% After Revenue Miss, Reduced Sales Outlook
 

Related Articles

Affirm Holdings Rallies After DA Davidson Upgrade
Affirm Holdings Rallies After DA Davidson Upgrade By Investing.com - Jan 29, 2022

 By Sam Boughedda Investing.com — Fintech company Affirm Holdings Inc (NASDAQ:AFRM) shares surged 16% Friday on the back of an upgrade by DA Davidson. Analyst Christopher...

S&P 500 Rides Apple Rally Higher as Tech Fights Back
S&P 500 Rides Apple Rally Higher as Tech Fights Back By Investing.com - Jan 29, 2022

By Yasin Ebrahim Investing.com – The S&P 500 rallied Friday, as blowout quarterly results from Apple put tech back into the driving seat following a recent rout amid jitters about...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email