AeroVironment Q3 Profit Surges; Shares Rise - Update

(RTTNews) - AeroVironment Inc. (AVAV) Tuesday reported an increase in profit for the third quarter, as revenues surged driven largely by higher demand for unmanned aircraft. Both earnings and revenues for the quarter came in ahead of analysts' estimates, sending AeroVironment shares up by about six percent in extended trade on the Nasdaq.

The Monrovia, California-based company's third-quarter profit surged to $11.2 million or $0.49 per share from $3.9 million or $0.17 per share last year.

Adjusted earnings for the quarter were $0.34 per share. On average, 11 analysts polled by Thomson Reuters expected earnings of $0.19 per share for the quarter. Analysts' estimates typically exclude special items.

AeroVironment, which supplies drones for the U.S. military, said revenues surged 47 percent to $69.2 million from $47.1 million last year. Analysts expected revenues of $64.96 million for the quarter.

The company said revenue growth reflects sales increase at Unmanned Aircraft Systems segment of $19.8 million and Efficient Energy Systems segment of $2.3 million.

"During the third quarter we continued to execute on our strategic priorities successfully, delivering strong results with revenue up nearly 50 percent and a 100 percent increase in adjusted earnings per share on a year over year basis," said Chief Executive Tim Conver.

Looking ahead to 2014, the company continues to see earnings of $0.35 to $0.50 per share with revenues of $230 million to $250 million. Analysts currently expect earnings of $0.27 per share on revenues of $246.26 million for 2014.

AVAV closed Tuesday's regular trade at $31.74, up $1.02 or 3.32%. The stock further gained $1.78 or 5.61% in after-hours trade.