AVAV - Why AeroVironment Stock Soared in March
2024-04-05 11:06:17 ET
Investors in AeroVironment (NASDAQ: AVAV) are seeing their confidence in the drone maker pay off, and still see plenty of potential up ahead. Shares of AeroVironment surged by 20.9% in March, according to data provided by S&P Global Market Intelligence , and hit a new all-time high after the company reported a strong quarter and boosted full-year guidance.
AeroVironment makes unmanned aerial vehicles (UAVs) for the U.S. military and other customers. It is an area that has been the focus of military buyers for years, but the actual value of the platforms has been on display in Ukraine, helping to accelerate the push by the Pentagon and its allies to stock up on UAVs.
As a result, sales are surging. In March, AeroVironment reported fiscal third-quarter earnings that nearly doubled Wall Street's consensus estimates on a per share basis on revenue that was up 39% year over year. For the period, which ended Jan. 27, net cash from operations swelled to $26.9 million, up from $8.6 million in the prior-year period. AeroVironment also finished the quarter with a funded backlog of $462.8 million in future business, giving investors some clarity about what they could expect in the quarters to come.
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Why AeroVironment Stock Soared in March