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Apr 30, 2023

AeroVironment Q4 2023 Earnings Report

AeroVironment reported a record fourth quarter revenue with a significant increase, but experienced a net loss due to a goodwill impairment charge related to the Medium UAS business.

Key Takeaways

AeroVironment reported record Q4 revenue of $186 million, a 40% increase year-over-year. However, the company experienced a net loss of $160.5 million, or $(6.31) per diluted share, compared to a net income of $7.3 million, or $0.29 per diluted share in the prior-year period. The net loss was primarily due to a $156.0 million goodwill impairment charge related to the Medium UAS (MUAS) business.

Record fourth quarter revenue of $186.0 million, up 40% year-over-year.

Goodwill impairment charge of $156.0 million related to the MUAS business impacted net income.

Funded backlog reached a record $424.1 million as of April 30, 2023.

Company expects revenue between $630 million and $660 million for fiscal year 2024.

Total Revenue
$186M
Previous year: $133M
+40.3%
EPS
$0.99
Previous year: $0.3
+230.0%
Gross Profit
$68.4M
Previous year: $48.6M
+40.7%
Cash and Equivalents
$133M
Previous year: $77.2M
+72.0%
Free Cash Flow
-$2.15M
Previous year: $8.33M
-125.8%
Total Assets
$825M
Previous year: $914M
-9.8%

AeroVironment

AeroVironment

Forward Guidance

For fiscal year 2024, the Company expects revenue of between $630 million and $660 million, net income of between $50 and $58 million, Non-GAAP adjusted EBITDA of between $110 million and $120 million, earnings per diluted share of between $1.91 and $2.21 and non-GAAP earnings per diluted share, which excludes amortization of intangible assets, other non-cash purchase accounting expenses and equity securities investments gains or losses, of between $2.30 and $2.60.

Positive Outlook

  • Revenue expected to be between $630 million and $660 million.
  • Net income expected to be between $50 million and $58 million.
  • Non-GAAP adjusted EBITDA expected to be between $110 million and $120 million.
  • Earnings per diluted share expected to be between $1.91 and $2.21.
  • Non-GAAP earnings per diluted share expected to be between $2.30 and $2.60.

Challenges Ahead

  • Estimates are forward-looking and reflect management’s view of current and future market conditions.
  • Estimates are subject to risks and uncertainties.
  • Ability to efficiently and on a timely basis integrate acquisitions.
  • Ability to obtain and retain government contracts.
  • Changes in the timing and/or amount of government spending.