AeroVironment 9% Pre-Market Drop Hits ARKX’s 6.8% Holding After Q3 Miss
ARKX’s 6.8% AeroVironment holding plunged over 9% premarket as the company reported Q3 EPS of $0.64 missing the $0.69 estimate and revenue of $408.05 million versus $475.63 million expected. AeroVironment cut its fiscal 2026 EPS outlook to $2.75–3.10 and recorded a $151.3 million goodwill impairment.
1. Q3 Earnings Miss
AeroVironment posted Q3 fiscal 2026 earnings of $0.64 per share, missing the $0.69 consensus, while revenue came in at $408.05 million versus an expected $475.63 million, reflecting a 14% shortfall despite 143% year-over-year growth.
2. Fiscal 2026 Guidance Cut
The company reduced its adjusted fiscal 2026 EPS outlook to $2.75–$3.10, down from $3.40–$3.55, falling below the $3.31 analyst estimate, citing revenue timing shifts and continued investment in R&D and commercialization.
3. Goodwill Impairment in Space Unit
A $151.3 million goodwill impairment was recorded for the Space reporting unit after a stop-work order halted the BADGER phased array antenna program, leading to revised long-term cash flow projections and higher anticipated development costs.
4. Impact on ARKX Portfolio
With AeroVironment accounting for 6.8% of ARKX, the premarket 9% drop and lowered guidance could pressure the ETF’s NAV and prompt portfolio rebalancing given the exposure to defense and aerospace equities.