AeroVironment, Inc. (NASDAQ:AVAV) stock plunges 15.10% (As on June 27, 11:47:37 AM UTC-4, Source: Google Finance) after the company gave weak EPS guidance for FY 25. AeroVironment’s funded backlog as of April 30, 2024, stood at $400.2 million, a slight decrease from the $424.1 million reported at the same time last year. Gross margin for the fourth quarter of fiscal 2024 was $75.6 million, an increase of 11% as compared to $68.4 million for the fourth quarter of fiscal 2023, reflecting higher service margin of $8.0 million, partially offset by lower product gross margin of $0.8 million. As a percentage of revenue, gross margin increased to 38% from 37%, primarily due to a decrease in the proportion of service revenue to total revenue driven by the closure of COCO site locations, partially offset by product mix. Gross margin was favorably impacted by a decrease in depreciation charges for in-service assets of $4.4 million related to the closure of COCO site locations during fiscal year 2023. Income from operations for the fourth quarter of fiscal 2024 was $5.9 million as compared to loss from operations of $(165.7) million for the fourth quarter of last fiscal year. Non-GAAP adjusted EBITDA for the fourth quarter of fiscal 2024 was $22.2 million as compared to $46.4 million for the fourth quarter of fiscal 2023.

AVAV in the fourth quarter of FY 24 has reported the adjusted earnings per share of 43 cents, beating the analysts’ estimates for the adjusted earnings per share of 21 cents. The company had reported the adjusted revenue growth of 6 percent to $197 million in the fourth quarter of FY 24, beating the analysts’ estimates for revenue of $188.56 million. This reflects higher product sales of $23.1 million, partially offset by a decrease in service revenue of $12.1 million. From a segment standpoint, the year-over-year increase was due to revenue growth in Loitering Munitions Systems (“LMS”) of 74%, partially offset by decreases in UnCrewed Systems (“UxS”), the renamed Unmanned Systems segment, of 15% and MacCready Works (“MW”) of 9%.

For the upcoming fiscal year 2025, AeroVironment provided guidance for an EPS range of $3.18 to $3.49, with a midpoint slightly below the analyst consensus of $3.36. The company’s revenue guidance for fiscal year 2025 is forecasted to be between $790 million and $820 million, with the midpoint falling below the consensus estimate of $805 million.