Channel: DailyFinance.com
Viewing all articles
Browse latest Browse all 9760

Why Aerovironment, Inc.'s Shares Popped


Filed under:

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of drone maker AeroVironment, jumped as much as 13.5% today after the company reported earnings.

So what: Revenue was down 19% in the fiscal second quarter, to $64.9 million, and net income dropped 80%, to $1.7 million, or $0.07 per share. Results were in-line with expectations, and the outlook for revenue of $230 million to $250 million and earnings of $0.35 to $0.50 per share were unchanged. 

Now what: Investors are taking Aerovironment's increased backlog as the reason to buy the stock today. Funded orders are up to $133.8 million from $59.4 million at the beginning of the fiscal year. The order intake in Q2 was positive, but still isn't enough to get me to jump into shares. We've seen the ups and downs of orders for unmanned aircraft before, and one good quarter doesn't spell a trend, especially the direction net income went this quarter.

Long-term, I'm optimistic about Aerovironment, but I'd like to see more revenue and profit hit the income statement, and continued solid orders before jumping in.

A hot stock for 2014
Looking for a market-beating stock for next year? The Motley Fool's chief investment officer has just hand-picked one such opportunity in our new report: "The Motley Fool's Top Stock for 2014." To find out which stock it is and read our in-depth report, simply click here. It's free!

The article Why Aerovironment, Inc.'s Shares Popped originally appeared on Fool.com.

Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool recommends AeroVironment. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Read | Permalink | Email this | Linking Blogs | Comments

Viewing all articles
Browse latest Browse all 9760