Boston, MA 03/06/2014 (wallstreetpr) – Aerovironment, Inc. (NASDAQ:AVAV) Tuesday issued quarterly performance results which showed the company exceeded expectations and its previous quarter figures. That was good enough as shares of the company responded with big gains Wednesday. However, in Thursday trading, the shares are trending down almost 4 percent by 10:45 a.m. EST. So then, talking about the strong results isn’t the priority now, but how the company is making sure that it will keep posting growing results is very important.
After issuing results which showed that its net income was $11.2 million or $0.49 per share, compared with net income of $3.8 million of $0.17 per share in the prior year, Aerovironment, Inc. (NASDAQ:AVAV) went on to issue encouraging revenue outlook for its current fiscal year.
Despite the well-known fact that defense spending has slowed down, the company predicted revenue between $230 and $250 million for the year. And profit is expected to come in the range of 35 – 50 cents per share diluted. Looking at the predicted revenue, it will essentially be flat to what was there in 2013.
As mentioned earlier, with the results already out and the stock already showing signs of volatility, what is important now is how the future is shaping up for the stock and what that future means to you – the investor.
Deals to pursue opportunities
Aerovironment, Inc. (NASDAQ:AVAV) which is the top supplier of small drones to Pentagon, announced an agreement with Lockheed Martin Corporation (NYSE:LMT). The two companies are collaborating to pursue opportunities in unmanned aircraft development. As part of this collaboration, Aerovironment, Inc. (NASDAQ:AVAV) hopes to bring Lockheed’s ground and mission systems into its Global Observer aircraft.
According to Aerovironment, Inc. (NASDAQ:AVAV) CEO Timothy Conver, the deal will lead to benefits for the company and investors will no doubt partake in that.
Electric vehicles charging
Signing a deal with Lockheed Martin Corporation (NYSE:LMT) towards benefit from defense spending is just one way that Aerovironment, Inc. (NASDAQ:AVAV) is going to keep its revenue, profits and of course, stock price growing. The other opportunity is the electric vehicles charging systems.
Aerovironment, Inc. (NASDAQ:AVAV) makes electric vehicles charging systems, and it is one of its businesses that has been growing rapidly. From earning $9.4 million in sales a year ago from this segment, the company ended up with $11.7 million, suggesting a 25.5 percent jump in sales over one year duration.
Investors Takeaway
If you look at the deals and the plans that Aerovironment, Inc. (NASDAQ:AVAV) has in place, there is no doubt that its eyes are set on growth horizon. It may thus be that the slip in the stock price today offers a discounted entry position for investors who can decipher the opportunities.
