AeroVironment, Inc. (NASDAQ:AVAV) is a prominent player in the defense and aerospace industry, known for its innovative unmanned aircraft systems and tactical missile systems. The company is set to release its third-quarter fiscal 2025 earnings on March 4, 2025. Analysts predict earnings per share (EPS) of $0.58 and revenue of approximately $206.4 million for this period.
AeroVironment has a history of exceeding earnings expectations, with an average earnings surprise of 54.69% over the past four quarters. Despite a projected 7.9% decline in EPS compared to the same period last year, the company is expected to report a 1.4% increase in revenue, reaching $189.25 million. This growth is largely driven by the strong performance of its Loitering Munitions Systems (LMS) and Medium Weight (MW) units.
The LMS segment, in particular, is benefiting from increased global demand due to ongoing conflicts and the U.S. Department of Defense's need for resupply. The Zacks Consensus Estimate for this segment's quarterly revenues is approximately $92.3 million. This demand is likely to have a positive impact on AeroVironment's overall revenue growth, despite the challenges posed by higher marketing expenses.
AeroVironment's financial metrics reflect its strong market position. The company has a price-to-earnings (P/E) ratio of approximately 82.14, indicating high investor confidence. Its price-to-sales ratio is about 5.29, and the enterprise value to sales ratio is approximately 5.24, both suggesting a solid valuation relative to sales. The low debt-to-equity ratio of 0.041 and a current ratio of 4.61 highlight the company's strong financial health and ability to cover short-term liabilities.
