Stifel Remains Sidelined on AeroVironment (AVAV) Following 1Q Report
- Donald Trump Sworn in as 45th U.S. President
- Wall Street ends higher as Trump becomes president
- Walgreens Boots Alliance (WBA) Said to Face Antitrust Concern for Rite Aid (RAD) Fix - Bloomberg
- Bristol-Myers Squibb (BMY) Says It Won't Pursue Accelerated U.S. Regulatory Pathway for Opdivo Plus Yervoy in Lung Cancer
- Apple (AAPL) Sues Qualcomm (QCOM) Over Patent Royalties in Antitrust Case - Bloomberg
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
Stifel reiterated a Hold rating on AeroVironment (NASDAQ: AVAV) following the company's 1Q earnings report. AV took a $1.8m charge in 1Q to account for higher warranty costs. Management indicated that, excluding the higher warranty costs in 1Q, results were largely in line with expectations.
Analyst Joseph DeNardi commented, "AV reported an EPS loss of $0.51 vs. our estimate for a $0.10 loss with the difference largely due to lower gross margins at both segments and higher SG&A and R&D. While the latter may be more a function of timing than anything to worry about, the gross margin miss was due in part to higher warranty costs associated with prior small UAS deliveries which is a concern. Management maintained guidance despite the lower than expected EPS in the quarter without providing much detail around what's expected to offset that through the year. In addition, the company cited softer bookings activity in the quarter which will result in results being more heavily weighted to F4Q than previously expected. As a result, we now see increased risk to guidance for the full year and are lowering estimates as a result."
Shares of AeroVironment closed at $29.79 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Union Pacific (UNP) PT Raised to $102 at Stifel Following 4Q Report
- UPDATE: Stifel Upgrades Abraxas Petroleum (AXAS) to Buy Amid Emerging Delaware Basin Potential
- Bassett Furniture (BSET) PT Raised to $28 at Stifel Following 4Q EPS Beat
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View
Related EntitiesStifel, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!