AeroVironment Takes $241M Space Goodwill Hit, Forecasts EPS Below Consensus
AVAV sits 24% above its 52-week low of $135.2 on elevated volume (2.4× avg).
Summary
AeroVironment announced a significant $241 million goodwill impairment in its Space unit, stemming from a contract cancellation. The company also issued fiscal year adjusted EPS guidance of $3.02-$3.34, with the midpoint falling below analyst consensus. This financial update follows yesterday's revenue guidance, which was slightly above consensus, and recent negative news including a class action lawsuit and director resignations. The impairment and EPS miss are material negative factors, despite a large $2.7 billion backlog.
At the time of this announcement, AVAV was trading at $167.59 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $6.9B. The 52-week trading range was $135.20 to $417.86. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Wiseek News.