AVAV - AeroVironment's Guidance Keeps Getting Better Despite Its ~2x EPS Growth
2024-03-06 16:14:53 ET
Summary
- AeroVironment reported strong Q3 FY24 results, with 91% growth in non-GAAP EPS and raised guidance for the year.
- Revenue from the LMS segment, including Switchblade drones, more than doubled, while UMS segment growth moderated.
- The company is well positioned to win more contracts especially for its Switchblade drones and its VTOL drone systems.
Investment thesis
AeroVironment ( AVAV ) reported its Q3 FY24, which significantly outperformed consensus expectations, with its 91% growth in non-GAAP EPS pleasantly surprising me as well. But the surprises on the upside didn’t just stop there, with the drone maker raising its guidance for the remainder of the year while hinting at some strong growth as it heads into FY25....
AeroVironment's Guidance Keeps Getting Better Despite Its ~2x EPS Growth