AeroVironment, Inc. (NASDAQ:AVAV) stock fell 2.85% (As on September 5, 11:23:38 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the first quarter of FY 25. Gross margin for the first quarter of fiscal 2025 was $81.5 million, an increase of 24% as compared to $65.7 million for the first quarter of fiscal 2024, reflecting higher product gross margin of $16.1 million, partially offset by lower service margin of $0.3 million. As a percentage of revenue, gross margin remained consistent at 43%. Gross margin was negatively impacted by an increase of $1.3 million of intangible amortization expense and other related non-cash purchase accounting expenses. Income from operations for the first quarter of fiscal 2025 was $23.1 million as compared to $26.4 million for the first quarter of last fiscal year. Net income for the first quarter of fiscal 2025 was $21.2 million as compared to $21.9 million, in the prior-year period, respectively. Non-GAAP adjusted EBITDA for the first quarter of fiscal 2025 was $37.2 million and non-GAAP earnings per diluted share were $0.89, as compared to $37.3 million and $1.00, respectively, for the first quarter of fiscal 2024. As of July 27, 2024, funded backlog was $372.9 million, as compared to $400.2 million as of April 30, 2024.

AVAV in the first quarter of FY 25 has reported the adjusted earnings per share of 89 cents, beating the analysts’ estimates for the adjusted earnings per share of 61 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 24 percent to $189.48 million in the first quarter of FY 25, beating the analysts’ estimates for revenue by 2.84%. This reflects higher product sales of $40.0 million, partially offset by a decrease in service revenue of $2.9 million. From a segment standpoint, the year-over-year increase was due to revenue growth in Loitering Munitions Systems (“LMS”) of 68% and UnCrewed Systems (“UxS”) of 22%, partially offset by a decrease in MacCready Works (“MW”) of 24%

For fiscal year 2025, the Company continues to expect revenue of between $790 million and $820 million, net income of between $74 million and $83 million, Non-GAAP adjusted EBITDA of between $143 million and $153 million, and non-GAAP earnings per diluted share of between $3.18 and $3.49.