AeroVironment Q1 Blowout: EPS Beats by 146%, Backlog Hits Record $1.5B, Laser Weapons Touted as Flagship
AVAV is trading near its 52-week low of $135.2 (9.5% above the low) on elevated volume (3.0× avg).
Summary
AeroVironment crushed Q1 FY2027 expectations: revenue of $480.49M beat the $456.2M consensus, and adjusted EPS of $0.59 nearly tripled the $0.24 estimate. Funded backlog surged 37% YoY to a record $1.5B, with total backlog around $2.8B. The company landed a $465M U.S. Army EHEL contract for its LOCUST directed-energy system—the military's first production contract for laser weapons—plus a $500M sole-source IDIQ for TITAN MS with an initial $80M award. CEO Wahid Nawabi said the laser weapons line could become a 'flagship franchise' rivaling its largest businesses, potentially exceeding $500M in annual revenue within a year. Management guided FY2027 revenue to $2.125B-$2.225B, bracketing the $2.195B consensus, and maintained adjusted EPS of $3.02-$3.34. Shares jumped 6.87% premarket to $150.47. This follows the Q1 10-Q filed yesterday disclosing ineffective controls and material weaknesses—the earnings strength and contract wins provide a sharp positive counterpoint. Watch for execution on the EHEL ramp and any further international laser orders.
At the time of this announcement, AVAV was trading at $148.00 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $7.2B. The 52-week trading range was $135.20 to $417.86. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Benzinga.