AeroVironment Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call

AeroVironment will report Q2 results after the close on Dec. 9, with Street consensus at $0.79 EPS versus $0.47 a year ago and revenue of $465.6 million versus $188.5 million a year earlier; the company on Monday disclosed an $874 million, five‑year IDIQ with the U.S. Army for unmanned aerial and counter‑UAS systems supporting foreign military sales, a contract that helps explain the revenue lift and underpins near‑term visibility. Shares rose 1.5% to $282.47 on the news, and recent analyst coverage remains constructive with ratings ranging from Outperform/Buy to Strong Buy and price targets spanning roughly $348–$415, highlighting investor focus on defense demand and FMS-driven revenue growth ahead of the print.

Analysis

AeroVironment will report fiscal second-quarter results after the close on Dec. 9 with Street consensus at $0.79 EPS versus $0.47 a year earlier and revenue of $465.63 million compared with $188.46 million in the year-ago quarter, indicating expectations for a sizable year‑over‑year top‑line expansion. The company disclosed a new $874 million, five‑year IDIQ award from the U.S. Army to supply unmanned aerial and counter‑UAS systems for foreign military sales, which the market is pricing into near‑term revenue visibility.

Shares reacted positively to the contract, rising 1.5% to close at $282.47 on Monday, and Benzinga’s sentiment metrics characterize the story as moderately positive and bullish. Recent analyst coverage is constructively biased: ratings range from Buy/Outperform to Strong Buy with price targets clustered between $348 and $415, while individual analysts have adjusted targets (e.g., RBC cut to $400) but maintained positive stances.

The principal near‑term drivers for investors will be the company’s reported revenue recognition of FMS orders, margin implications from higher volume, and any management commentary on backlog conversion timing; analyst accuracy rates (64%–87%) and differing targets reflect model sensitivity to timing and margins, creating execution risk around the print.

Key Decisions for Investors

• Wait for the Q2 print and management commentary on revenue recognition and margin impact from the $874m Army IDIQ before increasing exposure to AVAV
• If results meet or beat the $0.79 EPS and ~$465.6m revenue consensus and management confirms FMS revenue visibility, consider adding to positions given analyst price targets in the $348–$415 range relative to the $282.47 close
• If the company misses expectations or provides conservative timing on backlog conversion, reduce exposure or hedge, and monitor subsequent analyst revisions and the timing assumptions behind the IDIQ revenue recognition