NEW YORK (AP) -- Shares of AeroVironment Inc. climbed Wednesday after the maker of unmanned aircraft reported strong third-quarter results and raised its revenue outlook for the current fiscal year.
THE SPARK: AeroVironment makes small, unmanned aircraft for the military and charging systems for electric cars. After the market closed on Tuesday, AeroVironment said its profit grew 76 percent over the three months ended Jan. 29. It said its net income rose to $11.5 million, or 52 cents per share, from $6.5 million, or 30 cents per share. Revenue grew 39 percent, to $84.4 million from $60.9 million.
Analysts expected a smaller profit of 38 cents per share and revenue of $78.4 million, according to estimates compiled by FactSet.
THE BIG PICTURE: The Monrovia, Calif., company said revenue from unmanned aircraft grew 30 percent to $71.7 million, and sales of efficient energy systems more than doubled to $12.7 million from $5.8 million.
AeroVironment now expects its sales to grow 12.5 percent to 15 percent in the fiscal year ending April 30. That suggests a total of $280.7 million to $286.9 million in revenue. Previously the company said its revenue would grow 10 to 15 percent, which implied a total as low as $275.4 million.
Analysts were expecting $281.9 million in revenue on average.
THE ANALYSIS: "Unmanned capabilities remain a top priority of the U.S. Department of Defense even amid budget cuts and acquisition reform," said Keybanc Capital Markets analyst Michael Ciarmoli. Ciarmoli raised his fiscal 2011 and 2012 profit estimates, and increased his price target to $34 per share from $31. He rates the stock at "Buy."
SHARE ACTION: AeroVironment stock jumped $3.83, or 14.5 percent, to $32.44 in afternoon trading. The shares have traded between $20.70 and $32.98 in the last 12 months.
THE SPARK: AeroVironment makes small, unmanned aircraft for the military and charging systems for electric cars. After the market closed on Tuesday, AeroVironment said its profit grew 76 percent over the three months ended Jan. 29. It said its net income rose to $11.5 million, or 52 cents per share, from $6.5 million, or 30 cents per share. Revenue grew 39 percent, to $84.4 million from $60.9 million.
Analysts expected a smaller profit of 38 cents per share and revenue of $78.4 million, according to estimates compiled by FactSet.
THE BIG PICTURE: The Monrovia, Calif., company said revenue from unmanned aircraft grew 30 percent to $71.7 million, and sales of efficient energy systems more than doubled to $12.7 million from $5.8 million.
AeroVironment now expects its sales to grow 12.5 percent to 15 percent in the fiscal year ending April 30. That suggests a total of $280.7 million to $286.9 million in revenue. Previously the company said its revenue would grow 10 to 15 percent, which implied a total as low as $275.4 million.
Analysts were expecting $281.9 million in revenue on average.
THE ANALYSIS: "Unmanned capabilities remain a top priority of the U.S. Department of Defense even amid budget cuts and acquisition reform," said Keybanc Capital Markets analyst Michael Ciarmoli. Ciarmoli raised his fiscal 2011 and 2012 profit estimates, and increased his price target to $34 per share from $31. He rates the stock at "Buy."
SHARE ACTION: AeroVironment stock jumped $3.83, or 14.5 percent, to $32.44 in afternoon trading. The shares have traded between $20.70 and $32.98 in the last 12 months.