Earnings Review and Free Research Report: AeroVironment’s Revenue Jumped 21%; Net Loss Narrowed 63%

LONDON, UK / ACCESSWIRE / September 19, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on AeroVironment, Inc. (NASDAQ: AVAV), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=AVAV, following the Company's release of its first quarter fiscal 2018 financial results on August 29, 2017. The unmanned aircraft's maker reported better than expected results and provided guidance for the fiscal year. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Earnings Reviewed

For the first quarter ended July 29, 2017, AeroVironment's revenue totaled $43.8 million; an increase of 21% from revenue of $36.2 million in Q1 FY17, due to an increase in sales in the Company's Unmanned Aircraft Systems (UAS) segment of $5.8 million and an increase in sales in its Efficient Energy Systems (EES) segment of $1.8 million. AeroVironment's revenue beat analysts' estimates of $42.4 million.

AeroVironment's gross margin was $11.6 million for Q1 FY18; an increase from gross margin of $6.7 million in Q1 FY17, attributed to an increase in product margin of $6.4 million, partially offset by a decrease in service margin of $1.4 million. As a percentage of revenue, the Company's gross margin increased to 27% in the reported quarter from 18% in the year-ago comparable period. The increase in gross margin percentage was primarily due to a decrease in warranty-related costs and an increase in the proportion of product sales to total revenue.

For Q1 FY18, AeroVironment's loss from operations was $8.2 million compared to loss from operations of $15.6 million in Q1 FY17. The decrease in loss from operations was primarily a result of an increase in gross margin of $4.9 million and a decrease in research and development (R&D) expenses of $2.1 million. The Company's other income was $0.5 million for the reported quarter compared to other income of $0.1 million for the prior year's corresponding quarter.

For Q1 FY18, net loss attributable to AeroVironment was $4.4 million compared to net loss of $11.6 million for Q1 FY17. The Company's loss per share was $0.19 for the reported quarter compared to a loss per share of $0.51 for the prior year's same quarter. AeroVironment's loss was lesser than Wall Street's expectations of $0.34 per share.

Backlog

As of July 29, 2017, AeroVironment's funded backlog (unfilled firm orders for which funding is currently appropriated to the Company under a customer contract) was $85.3 million compared to $78.0 million as of April 30, 2017.

Cash Matters

AeroVironment's cash, cash equivalents, and investments totaled $261.1 million at the end of Q1 FY18; an increase of $19.2 million from the end of FY17. The Company's accounts receivable, including unbilled and retention receivables, totaled $41.4 million at the end of Q1 FY18; a decrease of $47.1 million from the end of FY17.

AeroVironment's total days sales outstanding was approximately 134 days for Q1 FY18 compared to 45 days for Q4 FY17 and 152 days for Q1 FY17. The Company's net inventory was $72 million at the end of the reported quarter compared to $60.1 million at the end of the prior quarter. AeroVironment's days in inventory were approximately 185 days for Q1 FY18 compared to 87 days for Q4 FY17 and 124 days for Q1 FY17. This increase in inventory days was primarily due to anticipated fiscal 2018 shipments from orders in backlog and anticipated orders.

In Q1 FY18, the Company invested approximately $3 million in property improvement and capital equipment and recognized $1.9 million of depreciation and amortization expenses.

Outlook

For the fiscal year 2018, AeroVironment expects revenue to be between $280 million and $300 million and earnings per diluted share to be between $0.45 and $0.65.

Stock Performance

At the closing bell, on Monday, September 18, 2017, AeroVironment's stock climbed 1.32%, ending the trading session at $49.13. A total volume of 689.08 thousand shares have exchanged hands, which was higher than the 3-month average volume of 350.95 thousand shares. The Company's stock price skyrocketed 56.22% in the last three months, 70.35% in the past six months, and 109.24% in the previous twelve months. Moreover, the stock soared 83.12% since the start of the year. The stock is trading at a PE ratio of 61.72 and currently has a market cap of $1.18 billion.

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