Yahoo Finance Results: AeroVironment, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates
AeroVironment, Inc. (NASDAQ:AVAV) shareholders are probably feeling a little disappointed, since its shares fell 3.9% to US$182 in the week after its latest yearly results. AeroVironment reported US$717m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$2.18 beat expectations, being 9.1% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for AeroVironment
Taking into account the latest results, the current consensus from AeroVironment's six analysts is for revenues of US$816.6m in 2025. This would reflect a decent 14% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 36% to US$2.90. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$804.0m and earnings per share (EPS) of US$2.73 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 7.8% to US$209. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic AeroVironment analyst has a price target of US$255 per share, while the most pessimistic values it at US$161. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await AeroVironment shareholders.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of AeroVironment'shistorical trends, as the 14% annualised revenue growth to the end of 2025 is roughly in line with the 16% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 2.4% annually. So although AeroVironment is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards AeroVironment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for AeroVironment going out to 2027, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 1 warning sign for AeroVironment that you need to be mindful of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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