Active Mover: AeroVironment, Inc. (NASDAQ: AVAV)

On Tuesday, Shares of AeroVironment, Inc. (NASDAQ: AVAV) jumped 2.48% to $87.77. The stock recorded $84.34 as its minimum price and hit the max level of $88.16, during its most recent trading session. It traded total volume of 298,342 shares lower than the average volume of 364.45K shares.

AeroVironment, Inc. (AVAV) recently stated financial results for its first quarter ended July 28, 2018.

FISCAL 2019 FIRST QUARTER RESULTS:

Revenue for the first quarter of fiscal 2019 was $78.00M, a boost of 127% from first quarter fiscal 2018 revenue of $34.40M. The increase in revenue was because of a boost in product sales of $36.50M and a boost in service revenue of $7.10M.

Gross margin for the first quarter of fiscal 2019 was $32.60M, a boost of 275% from first quarter fiscal 2018 gross margin of $8.70M. The increase in gross margin was mainly because of a boost in product margin of $22.70M and a boost in service margin of $1.20M. As a percentage of revenue, gross margin increased to 42% from 25%. The increase in gross margin percentage was mainly because of a boost in sales volume and a boost in the proportion of product sales to total revenue.

Income from continuing operations for the first quarter of fiscal 2019 was $14.20M, a boost from first quarter fiscal 2018 loss from continuing operations of $8.10M. The increase in income from continuing operations was mainly a result of a boost in gross margin of $23.90M, partially offset by a boost in research and development (“R&D”) expense of $0.90M and a boost in selling, general and administrative (“SG&A”) expense of $0.70M.

Other income, net, for the first quarter of fiscal 2019 was $9.30M contrast to other income, net of $0.50M for the first quarter of fiscal 2018. The increase in other income, net was mainly because of a one-time gain from a litigation settlement.

Provision for income taxes for the first quarter of fiscal 2019 was $2.60M contrast to a benefit for income taxes of $3.20M for the first quarter of fiscal 2018. The increase in provision for income taxes was mainly because of the increase in income before income taxes. The provision for income taxes was also influenced by a reduction of the federal statutory tax rate from 35% to 21% as a result of the Tax Cut and Jobs Act of 2017.

Equity method investment activity, net of tax, for the first quarter of fiscal 2019 was a loss of $0.60M associated with our investment in HAPSMobile, Inc. joint venture formed in December 2017.

Gain on sale of a business, net of tax for the first quarter of fiscal 2019 was $8.80M and resulted from the sale of our EES business.

Loss from suspended operations, net of tax for the first quarter of fiscal 2019 was $1.90M contrast to loss from suspended operations, net of tax for the first quarter of fiscal 2018 of $1.50M.

Net income attributable to AeroVironment for the first quarter of fiscal 2019 was $27.30M, a boost from first quarter fiscal 2018 net loss attributable to AeroVironment of $5.90M. Earnings per diluted share from continuing operations attributable to AeroVironment for the first quarter of fiscal 2019 was $0.85 contrast to a loss per share from continuing operations attributable to AeroVironment for the first quarter fiscal 2018 of $0.19.

BACKLOG:

As of July 28, 2018, funded backlog (remaining performance obligations under firm orders for which funding is presently appropriated to us under a customer contract) was $157.00M contrast to $71.10M as of July 29, 2017.

FISCAL 2019 — OUTLOOK FOR THE FULL YEAR:

For fiscal 2019, the company continues to expect its continuing operations to generate revenue of between $290.0M and $310.0M, and earnings per diluted share of between $1.10 and $1.40 at 5% ownership of the HAPSMobile, Inc. joint venture. The earnings per diluted share range include a one-time gain of $0.26 from a litigation settlement. The company has the right to increase its ownership percentage of HAPSMobile, Inc. to 19% at any time before the first flight test of the HAPSMobile aircraft under development.

AVAV has the market capitalization of $2.08B and its EPS growth ratio for the past five years was 18.60%. The return on assets ratio of the Company was 11.40% while its return on investment ratio stands at 6.10%. Price to sales ratio was 6.80 while 88.20% of the stock was owned by institutional investors.

Chad Pitman

Chad Pitman

I am Chad Pitman and I focus on breaking news stories and ensuring we (“Stocks Market Cap”) offer timely reporting on some of the most recent stories released through market wires about “Emerging Stocks”. I have formerly spent over 3 years as a trader in U.S. Stock Market and is now semi-stepped down. I work on a full time basis for stocksmarketcap.com specializing in quicker moving active shares with a short term view on investment opportunities and trends.

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