AeroVironment, Inc. (NASDAQ:AVAV) stock rose 5.52% (As on Dec 8, 11:01:08 AM UTC-4, Source: Google Finance) after the company posted mixed results for the second quarter of FY 22. The company has achieved solid backlog of $252 million driven by new wins across multiple business segments and in part by recent strategic acquisitions that are already yielding strong results. Gross profit for the second quarter was $42.5 million, an increase of 4% year-over-year. Gross margin percentage fell to 35% from 44%, reflecting product mix and supply chain effects. The company has reported net income of $2.5 million in the second quarter of FY 22 as compared to $2.1 million for the second quarter of fiscal year 2021.

AVAV in the second quarter of FY 22 has reported the adjusted earnings per share of 78 cents, beating the analysts’ estimates for the adjusted earnings per share of 69 cents, according to Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 32 percent to $122.01 million in the second quarter of FY 22, missing the analysts’ estimates for revenue by 9.0%.

For fiscal year 2022, revenue is now expected to be between $440 million and $460 million. Net loss from continuing operations is forecasted to be between $12 million and $8 million. Adjusted EBITDA is anticipated to be between $59 million and $65 million. The diluted loss per share will be between $0.47 and $0.33 and non-GAAP diluted EPS is forecasted to be between $1.23 and $1.37.

On the other hand, in September, the company had announced that the U.S. army exercised its third and final option under the Flight Control Systems, or FCS, domain of a multi-year small UAS contract. The value of this option was approximately $11.7 million, including flight control system kits, ground control stations and various spare parts for the Army’s existing fleet of AeroVironment systems. The delivery of this contract award is scheduled to be completed by September of next year. Further, within the Tactical Missile Systems segment, the company continues to see growing demand for our products and believe there is a great opportunity to replace traditional munitions on ground, air and sea vehicles. In the quarter, the company successfully demonstrated the integration of the Switchblade 300 loitering missiles and JUMP 20 Medium UAS for increased mission autonomy and efficacy.