Overview

• U.S. defense tech firm's fiscal Q4 revenue more than doubled yr/yr, driven by acquisitions

• Adjusted EPS for fiscal Q4 beat analyst expectations

• Gross margin fell to 32% from 36%, mainly due to higher service revenue and amortization

Outlook

• AeroVironment expects fiscal 2027 revenue between $2.125 bln and $2.225 bln

• Company sees fiscal 2027 net income of $8 mln to $24 mln

• AeroVironment forecasts fiscal 2027 non-GAAP adj EBITDA of $305 mln to $325 mln

Result Drivers

• ACQUISITIONS - BlueHalo and Empirical Systems Aerospace acquisitions contributed $282.3 mln to Q4 revenue

• HIGHER PRODUCT AND SERVICE SALES - Q4 revenue rose due to higher product sales of $256.7 mln and service revenue of $109.8 mln

• GROSS MARGIN PRESSURE - Gross margin percentage fell due to increased service revenue mix and higher amortization expenses

Company press release: ID:nBwbbRDwCa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Adjusted EPS	Beat	$1.84	$1.46 (16 Analysts)
Q4 Gross Margin		32%
Q4 Operating Income		$56.90 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy"

• Wall Street's median 12-month price target for AeroVironment Inc is $300.00, about 117.5% above its June 26 closing price of $137.95

• The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 58 three months ago

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