Mike Arnold
Value, growth at reasonable price, long only, tech

AeroVironment Flying High

Executive summary:

  • A solid Q3 FY 2014 earnings beat and bullish guidance provides runway for growth at AeroVironment (NASDAQ:AVAV).
  • Business contains two unique, but disparate operating businesses: (1) electronic vehicle charging stations and (2) unmanned aircraft systems.
  • Recent deal with large defense contractor Lockheed Martin (NYSE:LMT) validates AeroVironment, and could make it an acquisition target.

______________________

AeroVironment ("Aero") is a "market share leader in unmanned aircraft systems ("UAS") and industrial electronic vehicle ("EV") charging systems." Both are attractive, niche and growing industries where Aero has considerable experience and first mover advantage.

But what a difference a year makes in terms of valuation in the mercurial markets.

AVAV data by YCharts

One year ago, shares of Aero...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
WITH SEEKING ALPHA PRO, INVESTORS CAN ALSO:
  • Access Top Ideas, chosen by Seeking Alpha’s editors
  • Filter long and short ideas by market cap and sector
  • Get Coverage of over 5,000 stocks, many of which have little or no coverage elsewhere
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO." Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else." Patrick Rice, Mainstay Capital Management
100% Satisfaction Guaranteed
Money back guarantee. Seeking Alpha PRO members receive a no-questions-asked refund for membership on months paid and not used. Details