AeroVironment Q1 results beat estimates on higher product and service sales growth
AVAV•Outlook and operating drivers
AeroVironment maintained its fiscal 2027 revenue guidance of $2.125 billion to $2.225 billion.
The company expects fiscal 2027 net income of $10 million to $27 million and non-GAAP EPS of $3.02 to $3.34.
The company said Q1 revenue growth was due to:
- Higher product sales of $15.5 million
- Higher service revenue of $10.3 million
Gross margin improvement was primarily due to a decrease in intangible amortization and other non-cash purchase accounting expenses. AeroVironment also said lower operating loss reflected decreased selling, general and administrative expense, including lower acquisition-related and amortization costs, as well as reduced R&D expense.
Analyst coverage and valuation
The current average analyst rating on the shares is "buy", with 19 "strong buy" or "buy" recommendations, 3 "hold" ratings and no "sell" or "strong sell" ratings.
The average consensus recommendation for the aerospace and defense peer group is .
