AeroVirionment soars on Lockheed UAV partnership

|By:, SA News Editor

AeroVironment (AVAV +9.3%) and fellow UAV developer Lockheed Martin have signed a deal to "jointly pursue opportunities" for AeroVironment's Global Observer high-altitude/long endurance UAV.

AeroVironment states Lockheed's systems integration expertise gives it the chance to "develop innovative, end-to-end atmospheric satellite systems built around Global Observer that deliver breakthrough capabilities."

AeroVironment has surged to within striking distance of its 52-week high of $31.50. The company's UAV division sales were down 14% Y/Y (albeit up 59% Q/Q) during its October quarter, and accounted for 86% of revenue.