AeroVironment, Inc. (NASDAQ:AVAV) third-quarter results missed analyst expectations, with strong demand for its drone and counter-drone systems offset by funding delays and Space segment headwinds.
On the company’s Tuesday evening earnings call, AV executives recognized the miss but struck an upbeat tone on the outlook for next year.
- AVAV stock is moving. See the chart and price action here.
Q3 Setbacks
CEO Wahid Nawabi told analysts and investors that the Q3 miss was primarily due to adjustments made to its Space segment and revenue timing.
“Given industry-wide delays in government funding along with the shutdown, several orders we anticipated to receive in the third quarter have shifted to the right by a quarter or two,” Nawabi said, also noting the stop-work order on its SCAR (Satellite Communication Augmentation Resource) program.
Despite the shortfall, management highlighted robust demand across core franchises and a growing backlog that sets the stage for accelerating growth.
“Strong order flow increased our funded backlog in the third quarter, which is positioning us for …