• AeroVironment shares soared to a record high Tuesday as the maker of technology for drones, missiles and other military applications posted better-than-expected quarterly results.
  • Quarterly profit was nearly double estimates, and revenue beat forecasts, too.
  • The company raised and narrowed its full-year revenue guidance.

Shares of AeroVironment (AVAV) flew to a record high Tuesday as the maker of technology for drones, missiles, and other military applications posted better-than-expected quarterly results, and raised and narrowed its guidance.

The company late Monday reported third-quarter fiscal 2024 adjusted earnings per share (EPS) of $0.63, nearly double estimates. Revenue jumped 39% to a third-quarter record of $186.6 million, also exceeding forecasts. Gross profit margin was 48% higher to $67.3 million.1

AeroVironment explained that the revenue gain was driven by higher product sales, which increased 71% from a year earlier to $155.9 million, offsetting a 29% decline in revenue from contract services. Revenue grew 140% at the company’s Loitering Munitions Systems division and 23% at its Unmanned Systems unit.

CEO Wahid Nawabi said the company’s performance was “fueled by record demand and strong operating execution,” and has AeroVironment “on track for our best year ever.”

He added that with “increased global demand for our solutions, strong backlog and growing pipeline, AeroVironment remains well positioned for continued growth.”

The defense contractor now sees full fiscal year revenue between $700 million and $710 million, up from its previous outlook of $685 million to $705 million. It predicts adjusted EPS of $2.69 to $2.83, with a midpoint above analysts’ expectations.

AeroVironment shares were up 27% to $166.24 as of about 2:00 p.m. ET Tuesday. The stock has nearly doubled over the past year.

Art Investing for AllJust last month, an iconic Picasso sold for a whopping $139mm at auction, shattering expectations. But there’s another surprising group celebrating; the 61,000+ everyday users at Masterworks art investing platform. Masterworks’ ~$1 billion collection includes works by greats like Picasso, Banksy, and Basquiat, with +$45mm in art sold. Get priority access to skip the waitlist here.