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Dec. 7, 2021, 1:54 p.m. EST

AeroVironment stock set for biggest selloff in more than 12 years after slashing full-year profit, revenue outlook

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By Tomi Kilgore

Shares of AeroVironment Inc. /zigman2/quotes/201209017/composite AVAV -0.57% plummeted 28.3% toward a more-than 19-month low in afternoon trading Tuesday, putting them on track to suffer the biggest one-day selloff in more than 12 years, after the unmanned aircraft systems company reported a fiscal second-quarter profit that beat expectations, but revenue that came up short and slashed its full-year outlook. Net income for the quarter to Oct. 30 rose 20.6% from a year ago to $2.5 million, or 10 cents a share, while adjusted earnings per share grew 62.5% to 78 cents to beat the FactSet consensus of 62 cents, even as gross margin fell to 35% from 44%. Revenue increased 31.7% to $122.0 million but missed the FactSet consensus of $130.8 million. The company cut its fiscal 2022 financial guidance, citing "supply chain delays, extended procurement cycles, slower decision making in Washington and staffing shortages." The company roughly halved its adjusted EPS guidance range to between $1.23 and $1.37 from between $2.50 and $2.70, and dropped its revenue outlook to between $440 million and $460 million from between $560 million and $580 million. The stock, on track for the lowest close since April 27, 2020 and the biggest selloff since the record 33.6% plunge on March 10, 2009, has shed 34.0% year to date, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.03% has rallied 24.9%.

US : U.S.: Nasdaq
$ 91.03
-0.53 -0.57%
Volume: 68,094
March 22, 2023 2:54p
P/E Ratio
Dividend Yield
Market Cap
$2.31 billion
Rev. per Employee
+1.10 +0.03%
Volume: 0.00
March 22, 2023 3:00p

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