Stock Groups

AeroVironment Falls 28% After Revenue Miss, Reduced Sales Outlook -Breaking

[ad_1]

© Reuters.

Sam Boughedda

Investing.com — AeroVironment Inc (NASDAQ:) stockThe company’s fiscal second quarter 2022 results led to a 29% plunge Tuesday. The company reported earnings that were higher than expected, but the message was cautious, and revenue did not match or exceed the consensus.

AeroVironment CEO Wahid Nawabi stated that while we had achieved our second-quarter and first-half expectations, “headwinds have intensified in the last months and forced us to lower our full-year outlook.”

AeroVironment reported adjusted earnings per share at 78c on $122 million in revenue. The analysts polled by Investing.comAn adjusted EPS estimate of 62 cents was made on $130.83 million in revenue.

Defense contractor that specializes in unmanned aerial vehicle has been seeing its share prices slide continuously since February of this year. Today’s drop to $56.70 only adds to the fall.

Due to the change in competitive landscape, there had been concern about RBC Capital’s recent performance. RBC Capital’s analyst said that these concerns had been exaggerated in October.

The company’s 2022 sales outlook has been lowered to $440 million or $460 million from $560 million. It was previously $580 million. This is likely to be the main driver of today’s stock price drop. Its forecasted earnings per share for this period were also reduced to $1.23 to $1.37, from $2.50 and $2.70.

It was based on the “negative impact of supply chain delays and extended procurement cycles because the global COVID-19 epidemic has had on the world,” Nawabi stated. Washington’s slower decision-making due to Continuing Resolution budget uncertainties, staffing shortages and slow decisions in Washington have hindered us from realizing growth and bottom line results at the beginning of the fiscal year. Although we have a revised outlook and are working hard to control expenses, other problems, it is important that we remain realistic in our assessment of the current environment’s lack of visibility.

AeroVironment’s CEO is confident that AeroVironment will continue to be a long-term investor value provider.

Disclaimer: Fusion MediaThis website does not provide accurate and current data. CFDs include stocks, indexes and futures. Prices are provided not by the exchanges. Market makers provide them. Therefore, prices can be inaccurate and differ from actual market prices. These prices should not be used for trading. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion MediaFusion Media or any other person involved in the website will not be held responsible for any loss or damage resulting from reliance on this information, including charts, buy/sell signals, and data. Trading the financial markets is one of most risky investment options. Please make sure you are fully aware about the costs and risks involved.

[ad_2]