The company reported adjusted earnings of $0.44 per share, below Wall Street’s estimate of $0.79 per share, according to Fiscal.ai data.
- Its revenue of $472.5 million surpassed estimates of $465 million, aided by its BlueHalo acquisition.
- The company said it saw an unfavorable service product mix and an unfavorable product mix, partially due to the government shutdown.
- While estimates may still need further resetting, strong budget tailwinds in drones, directed energy, and laser communications support a favorable medium-term setup, Cantor analysts said.
Drone maker AeroVironment’s stock fell nearly 9% in early trading on Wednesday after the company’s fiscal second-quarter profit missed analysts’ expectations.
The firm reported adjusted earnings of $0.44 per share, below Wall Street’s estimate of $0.79 per share, according to Fiscal.ai data. Its revenue of $472.5 million came in ahead of an estimated $465 million, aided by its BlueHalo acquisition.
Shutdown Weighs
The company said it saw an unfavorable service product mix and an unfavorable product mix, partially as a result of the government shutdown, which delayed service revenue and orders. Its net loss for the second quarter of fiscal 2026 was $17.1 million, or $0.34 per share, compared with net income of $7.5 million, or $0.27 per diluted share, in the prior-year period, due to intangible amortization and other related non-cash purchase accounting expenses.
“While this quarter presented challenges in terms of the U.S. government shutdown and our transition to new operational systems, we are very pleased with the continued business momentum,” said Chief Financial Officer Kevin McDonnell.
What Did Cantor Analysts Say?
As per TheFly, Cantor Fitzgerald cut its price target on AeroVironment to $315 from $335, while maintaining an ‘Overweight’ rating. AeroVironment would likely trade lower in the near term after missing Street earnings before interest, taxes, depreciation, and amortization (EBITDA) and free cash flow expectations, though the pullback may be brief, the analyst told investors in a research note.
While estimates may still need further resetting, strong budget tailwinds in drones, directed energy, and laser communications support a favorable medium-term setup, provided cash flow concerns and fears of large-scale M&A unwind do not escalate, the firm added.
For fiscal year 2026, AeroVironment projected revenue of between $1.95 billion and $2.0 billion. Notably, defense firms are banking on a surge in military investment worldwide amid heightened geopolitical tensions. The United States, under President Donald Trump, has pledged to unleash American “drone dominance,” which has boosted the prospects of unmanned aerial system (UAS) developers.
What Are Stocktwits Users Thinking?
Retail sentiment on Stocktwits about AeroVironment was in the ‘extremely bullish’ territory at the time of writing.
Several users said they intended to buy the dip. “Anywhere in the $215-230 range is a bargain for this,” one user wrote.’
AeroVironment’s stock has risen over 62% this year.
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