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AeroVironment, Inc. (NASDAQ:AVAV) designs, develops, produces, and supports unmanned aircraft systems, and efficient energy systems for various industries and governmental agencies. It offers small unmanned aircraft systems (UAS), which provide intelligence, surveillance, and reconnaissance, including real-time tactical reconnaissance, tracking, combat assessment, and geographic data to the small tactical unit or individual war fighter.

It is scheduled to report its Q4 2012 results on June 26, 2012, after the market closes.

Recent EPS Actuals vs. Estimates

The company has failed to meet analysts' estimates in the last quarters. In the last quarter it reported $0.26 EPS, failing to meet analyst estimates of $0.42.

The consensus EPS is $0.71 based on 14 analysts' estimates, down from $0.79 a year ago. Revenue estimates are $112.05M, up from $106.06M a year ago. The median target price by analysts for the stock is $29.50.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On March 21, 2012, the company was downgraded from Outperform to Mkt Perform at FBR Capital.

Key Metrics

  • Market Cap: 513.86M
  • 52-week trading range: 21.14 - 36.49
  • Trailing P/E: 17.14
  • Forward P/E: 16.24
  • Price/Sales: 1.58
  • Price/Book: 1.81
  • PEG Ratio: 0.77
  • Total Debt: 0.00
  • Annual dividend yield: N/A
  • Return on Equity: 11.56%
  • Return on Assets: 9.02%

Latest Developments

  • On June 12, 2012, The Danish Acquisition and Logistics Organization announced at Eurosatory it has awarded AeroVironment firm fixed-price order of $9.6 million to supply the Danish Armed Forces with the Company's Puma AE small unmanned aircraft systems.
  • On June 1, 2012, AeroVironment Inc announced that it received a $15,813,406 firm fixed-price authorization to perform on May 22, 2012 from the United States Army as the initial portion of a contract action with a total projected value of $65,889,191.
  • On May 23, 2012, AeroVironment Inc announced that it has received a contract modification effective March 20, 2012 from the U.S. Army Close Combat Weapons Systems (CCWS), Program Executive Office Missiles and Space (PEO MS).
  • On May 7, 2012, AeroVironment, Inc. announced the Port of Seattle has awarded the Company a contract valued up to $8.8 million through 2014, to supply its PosiCharge electric Ground Support Equipment (eGSE) fast charge systems to the Seattle-Tacoma International Airport.
  • On April 30, 2012, AeroVironment, Inc announced it received a firm fixed-price order valued at $3,653,519 on March 15, 2012 from the United States Marine Corps through an existing U.S.
  • On April 20, 2012, AeroVironment, Inc. announced that it has received a firm fixed-price order valued at $20,430,433 from the U.S. Army for RQ-20A Puma AE small unmanned aircraft systems (UAS) on March 27, 2012.
  • On April 18, 2012, AeroVironment, Inc. announced that it has received a firm fixed-price order valued at $2,431,440 on April 5, 2012 from the U.S. Air Force for Puma AE small unmanned aircraft systems through an existing U.S.
  • On March 12, 2012, AeroVironment, Inc. announced it received a new $11,095,872 cost-plus-fixed-fee sole source contract award on March 1, 2012 from the United States Army.
  • On March 6, 2012, AeroVironment, Inc. announced that for fiscal 2012, it reiterated revenue guidance of $321 million to $336 million, and earnings per share of $1.28 to $1.35 on a fully diluted basis.
  • On February 15, 2012, AeroVironment, Inc. announced that it recently received an order from the United States Air Force for Switchblade loitering munition systems and services.

Competitors

AeroVironment, Inc. operates in Aerospace/Defense Products & Services industry. The company could be compared to Alliant Techsystems Inc. (NYSE:ATK), GenCorp Inc. (NYSE:GY), Mercury Computer Systems, Inc. (NASDAQ:MRCY), and Oshkosh Corporation (NYSE:OSK). Below is the table comparison of the most important ratios between these companies and the industry.

Below is the chart comparison with the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

AVAV Chart

AVAV data by YCharts

Competitors' Latest Development

  • On June 11, 2012, Mercury Computer Systems announced that it has signed a definitive agreement to acquire Micronetics, Inc. Pursuant to the terms of the agreement, Mercury will acquire Micronetics via merger for $14.80 per share.
  • On June 7, 2012, Oshkosh Corp. announced presidential changes at the corporate level and in two of its business segments, Access Equipment and Commercial. Effective August 1, 2012, Wilson Jones, Oshkosh Corporation executive vice president and president of the Access Equipment segment, is promoted to president and chief operating officer (COO) of Oshkosh Corporation.
  • On May 17, 2012, Mercury Computer Systems announced that it has received a contract from a defense prime contractor to provide an advanced solid state data recorder for the aggregation and storage of sensor data from airborne ISR applications.
  • On May 3, 2012, Alliant Techsystems Inc reaffirmed fiscal 2013 sales guidance to a range of approximately $4.0 to $4.1 billion. The Company expects fiscal 2013 earnings per share (EPS) in a range of $6.25 to $6.55, an increase of $0.25 per share, reflecting lower than anticipated pension expense.
  • On May 1, 2012, Alliant Techsystems Inc announced that its Board of Directors has declared a quarterly cash dividend of $0.20 per share. The dividend will be payable June 28, 2012, to stockholders of record as of June 11, 2012.
  • On April 30, 2012, Alliant Techsystems Inc announced that it has received orders totaling more than $266 million for small caliber ammunition under an Indefinite Delivery/Indefinite Quantity (IDIQ) contract with the U.S.
  • On April 26, 2012, Mercury Computer Systems announced that it was selected by Raytheon Space and Airborne Systems (SAS) to provide an Application-Ready Subsystem (ARS) and integration services for Raytheon's Advanced Distributed Aperture System (ADAS).
  • On April 24, 2012, Mercury Computer Systems announced that for fourth quarter of 2012, it expects revenues to be in the range of approximately $60 million to $66 million.
  • On April 18, 2012, Mercury Computer Systems announced that it has received a contract from a major defense prime contractor to provide high performance digital signal processing modules and software to facilitate a technology refresh for the prime's airborne radar application.
  • On April 11, 2012, Textron Inc.'s AAI Unmanned Aircraft Systems And Mercury Computer Systems's KOR Electronics announced a strategic alliance that combines AAI's expertise as a UAS systems integrator with KOR's signals intelligence ((SIGINT)) equipment.
  • On April 4, 2012, Mercury Computer Systems announced it received $5.1 million in follow-on orders from a defense prime contractor for rugged embedded multi-processing modules for two airborne radar applications.
  • On March 13, 2012, Alliant Techsystems reaffirmed fiscal 2012 guidance and expects revenue of approximately $4.6 billion, earnings per share in a range of $7.65 to $7.75.
  • On March 12, 2012, Alliant Techsystems announced that it is being awarded an Indefinite Delivery/Indefinite Quantity (IDIQ) agreement from the Department of Homeland Security, U.S.
  • On February 15, 2012, AeroVironment, Inc. announced that it recently received an order from the United States Air Force for Switchblade loitering munition systems and services.
  • On February 2, 2012, Alliant Techsystems announced that Neal Cohen will become the Company's Executive Vice President and Chief Financial Officer, effective Feb. 13, 2012. Mr.
  • On February 2, 2012, Alliant Techsystems announced that for fiscal 2012, it now expects sales of approximately $4.6 billion, compared to previous guidance of $4.6-$4.7 billion.
  • On January 31, 2012, Alliant Techsystems announced that its Board of Directors has declared a quarterly cash dividend of $0.20 per share. The dividend will be payable December 29, 2011, to stockholders of record as of December 7, 2011.
  • On January 24, 2012, Mercury Computer Systems announced that for fiscal 2012, it currently expects total company revenue growth rate of approximately 10% year-over-year, GAAP net income from continuing operations per diluted share to be in the range of $0.59 to $0.61 and adjusted EBITDA as a percentage of revenue to be in line with target operating model's high end of approximately 18%.
  • On January 17, 2012, Mercury Computer Systems announced that Kevin M. Bisson has joined the Company as Senior Vice President, Chief Financial Officer (NASDAQ:CFO) and Treasurer. Mr.
  • On December 30, 2011, Mercury Computer Systems announced that it has completed its acquisition of KOR Electronics (KOR) and its wholly owned subsidiary, Paragon Dynamics, Inc.

Technical Insight


The stock has been in a recent downtrend since November of 2011. It has bounced back from a support at around $22 (the level of the end of 2010). It is trading below 200 SMA but is trying to bounce back up through the 50 SMA. If it does so, it may well test a trendline north at around $28 (close to mean broker target price of $29.50).

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: AeroVironment