AeroVironment, Inc. (NASDAQ: AVAV) stock surged over 14% on 6 Sep, (as of 12:04 PM GMT-4; Source: Google finance). As of July 28, 2018, funded backlog (remaining performance obligations under firm orders for which funding is currently appropriated to us under a customer contract) was $157.0 million compared to $71.1 million as of July 29, 2017. Further, gain on sale of a business, net of tax for the first quarter of fiscal 2019 was $8.8 million and resulted from the sale of the EES business. Loss from discontinued operations, net of tax for the first quarter of fiscal 2019 was $1.9 million compared to loss from discontinued operations, net of tax for the first quarter of fiscal 2018 of $1.5 million. Net income attributable to AVAV for the first quarter of fiscal 2019 was $27.3 million, an increase from first quarter fiscal 2018 net loss attributable to AeroVironment of $5.9 million
AVAV in the first quarter of FY 19 has reported the adjusted earnings per share of 59 cents, beating the analysts’ estimates for the adjusted earnings per share of 6 cents. The company had reported the adjusted revenue growth of 127 percent to $78 million in the first quarter of FY 19, beating the analysts’ estimates for revenue of $75.6 million. The increase in revenue was due to an increase in product sales of $36.5 million and an increase in service revenue of $7.1 million. Gross margin for the first quarter of fiscal 2019 was $32.6 million, an increase of 275% from first quarter fiscal 2018 gross margin of $8.7 million. The increase in gross margin was primarily due to an increase in product margin of $22.7 million and an increase in service margin of $1.2 million. As a percentage of revenue, gross margin increased to 42% from 25%. The increase in gross margin percentage was primarily due to an increase in sales volume and an increase in the proportion of product sales to total revenue.
AVAV expects full-year earnings to be $1.10 to $1.40 per share, with revenue in the range of $290 million to $310 million. The earnings per diluted share range includes a one-time gain of $0.26 from a litigation settlement. The company has the right to increase its ownership percentage of HAPSMobile, Inc. to 19% at any time prior to the first flight test of the HAPSMobile aircraft under development.