AeroVironment Inc. shares rallied in the extended session Tuesday after the defense contractor specializing in robotics reported record results and a better-than-expected forecast, and credited the performance of its products in Ukraine.
shares rallied nearly 6% after hours, following a 0.1% rise to close the regular session at $90.32.
“Given our pipeline, record backlog and global tailwinds supporting our broad portfolio of robotic solutions – bolstered by the strong performance of our systems in Ukraine – we are at the beginning of a new phase of growth that will lead to further attractive returns for our shareholders,” AeroVironment Chief Executive Wahid Nawabi said in a statement.
The company’s Switchblade “kamikaze” drone has seen service in the war in Ukraine as part of U.S. support efforts following Russia’s invasion last year.
For the year, AeroVironment forecast adjusted earnings of $2.30 to $2.60 a share on revenue of $630 million to $660 million. Analysts, on average, had forecast $2.04 a share on revenue of $601.1 million.
The company reported a fourth-quarter loss of $160.5 million, or $6.31 a share, versus net income of $7.3 million, or 29 cents a share, in the year ago period. That big loss included an event, triggered by the company not being selected for phase 2 of the Army’s Future Tactical Unmanned Aircraft System program.
As a result, the carrying value of the company’s medium UAS business unit “exceeded its fair value,” and “as a result of the decrease in expected cash flows a goodwill impairment charge of $156 million was recorded,” the company said in a statement.
Excluding that and other one-time charges, the company reported adjusted earnings of 99 cents a share, compared with 12 cents a share a year ago.
Revenue rose to $186 million from $132.6 million in the year-ago period as product sales grew to $141.5 million from $74 million a year ago. Analysts surveyed by FactSet had forecast adjusted earnings of 95 cents a share on revenue of $159.5 million.
The company also reported that backlog, as defined as “remaining performance obligations under firm orders for which funding is currently appropriated to us under a customer contract,” was $424.1 million, as of April 30, up from $210.8 million in the year-ago period.
Over the past 12 months, AeroVironment shares have advanced 9%, while the S&P 500 index
has gained 12.3%.