Why Dronemaker Stock AeroVironment Is Falling From the Sky This Week
The stock of AeroVironment (NASDAQ: AVAV) is having a rough landing this week, having dropped nearly 10% as of the market close Thursday. The big fall came on Wednesday after the drone maker announced its fourth-quarter and full-year 2021 earnings (the company closes its financial year on April 30).
Remarkably, AeroVironment exited the fourth quarter and fiscal 2021 with record revenue and backlog and beat its net income guidance. But the market was still miffed thanks to undue attention on one number.
Back in March, AeroVironment upgraded its revenue outlook to a range of $400 million to $410 million for the full year, backed by strong ongoing demand and a string of acquisitions. On July 29, though, the drone maker, which primarily serves the U.S. government (specifically the Department of Defense), reported revenue worth only $394.9 million. The shortfall was almost entirely because of lower sales for its High-Altitude Pseudo-Satellite systems (HAPS).
Source Fool.com
