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.
AeroVironment AVAV, +0.07% 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.
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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.
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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 SPX, +1.15% has gained 12.3%.