AeroVironment Stock Plunges 10% Following Major Q3 Revenue Miss

Key Stats for AeroVironment Stock

• Price change for AeroVironment stock: -10%
• $AVAV Share Price as of Mar. 10: $222
• 52-Week High: $418
• $AVAV Stock Price Target: $355

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What Happened?

AeroVironment (AVAV) stock dropped sharply after the defense drone maker missed on both earnings and revenue in its fiscal Q3.

• The company reported earnings of $0.64 per share, falling short of the $0.69 consensus estimate.
• Revenue came in at $408 million for the quarter — about 14% below what analysts had expected. That’s a big miss.

This wasn’t a one-off either.

Over the last four quarters, AeroVironment has beaten EPS estimates just once.

So what went wrong? Management pointed to two main issues.

• First, a government funding delay and brief shutdown pushed several anticipated orders into future quarters.
• Second, and more significantly, the U.S. Space Force terminated its SCAR satellite communications contract with AeroVironment for convenience. That triggered a $151 million non-cash goodwill impairment charge, which weighed heavily on sentiment.

On the positive side,

• AeroVironment stock has real underlying momentum. Organic revenue still grew 38% year-over-year.
• Funded backlog hit $1.1 billion, and year-to-date total awards reached $4.6 billion.
• Management also guided for a record fourth quarter.

See analysts’ growth forecasts and price targets for AeroVironment stock (It’s free) >>>

What the Market Is Telling Us About AeroVironment Stock

The selloff makes sense given the back-to-back misses, but AeroVironment stock may be oversold here.

The company operates in one of defense’s fastest-growing areas — autonomous drones, loitering munitions, and counter-UAS systems.

With conflicts escalating in the Middle East and demand for products like Switchblade and LOCUST surging, the long-term story remains intact.

Analysts currently see AeroVironment stock reaching $3.24 in EPS this fiscal year on roughly $1.97 billion in revenue.

Near-term execution will be key.

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!