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AeroVironment, Inc. (AVAV) Stock Continues Downward Trend Following Disclosure of Q4 2021 Financial Report

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AeroVironment, Inc. (AVAV) stock prices were down by 0.76% as of the market closing on June 29th, 2021, bringing the price per share down to USD$109.87 at the end of the trading day. After hours trading  saw the stock dip by another 4.43%, bringing it up to USD$105.00.

Revenue Reports

The company reported revenues for the fourth quarter of fiscal 2021 amounting to USD$136 million, up from the USD$135.2 million reported for the same time period of the prior fiscal year. The difference is largely attributable to a USD$15.8 million increase in revenue of the company’s Medium Unmanned Aircraft Systems (MUAS), as a result of the acquisition of Arcturus UAV in February of 2021.

Partial Offsetting of Revenue

The year-over-year increase in revenue was offset by a USD$15 million decrease in revenue of AVAV’s Unmanned Aircraft Systems (UAS) segment. This, in turn, was a result of a USD$14.2 million reduction in service revenue, as well as a decrease in product sales amounting to USD$0.8 million. The UAS segment consists of s the company’s existing small UAS, tactical missile systems and HAPS product lines, as well as the recently acquired Progeny Systems Corp’s Intelligent Systems Group (ISG).

Gross Margins

Gross margin for the fourth quarter of fiscal 2021 was reported at USD$59.7 million, up 12% from the USD$ 53.2 million reported for the prior year quarter. This difference was largely driven by a USD$8.8 million increase in product margin, while being partially offset by a USD$2.3 million reduction in service margin. Gross margins as a percentage increased fomr 39% to 44% over the course of the time period. This increase was primarily attributable to a favorable product and services mix.

Income from Operations

Q4 2021 income from operations was reported at USD$17.8 million, a USD$3.5 million decrease from the USD$21.3 million reported for Q4 2020. This difference is primarily driven by an increase in SG&A expenses in the amount of USD$8.5 million, as well as R&D costs having increased by USD$1.5 million. These increases were partially offset by a USD$6.5 million increase in gross margin. The increase in SG&A expenses was largely due to USD$3.3 million in acquisition-related expenses associated with the acquisitions of Arcturus UAV, ISG, and Telerob GmbH.

Future Outlook for AVAV

Armed with its recent string of potentially massively beneficial acquisitions, AVAV is poised to capitalize on the opportunities afforded to it as a result of its collaborations. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

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