AeroVironment Faces Loss In Q3, 2012 Due To Government Order Delays

Northern, WI 03/06/2013 (avauncer) - The shares of, Monrovia, Calif based defense company AeroVironment Inc (NASDAQ:AVAV) plummeted as much as 24% after the day trading on Tuesday as it reported a gloomy outlook for the year ahead because of  the deferrals and delays in Government orders.

In the quarter ended Jan 26, the company failed to meet market expectations as depicted in the Fact Set, average. The majority of analysts polled expected, a profit of 37 cents a share from revenues of $89.2 million. Its earnings declined to $3.9 million (17 cents a share) as against a profit of $5.7 million (26 cents a share) for the same quarter last year while its revenues slacked from $72 million to $47.1 million.

The sluggish sales in the efficient energy segment and the unmanned aircraft system as cited as the major deterrent to the revenue growth this year.

The company’s CEO and Chairmen Tim Conver say, shortfall in revenues and earnings this year, was not much of a surprise considering the current trends in demand and other market factors. Most of these the delays stem from issues of ” order timing” and not from “lost orders”, he added.

The trend is likely to continue in the next year also as the company lowered its forecast revenue range from $348-$370 million. EPS for 2013 will lie between 30 & 50 cents at a revenue stream that ranges between $230 million & $250 million. Market estimates suggest a forecast profit of $1.45 a share at a revenue level of $352.5 million.

In the after hours trading the company’s shares declined by as much as 24%.

AeroVironment Inc (NASDAQ:AVAV)  shares were down by 11.57% and currently trading at $19.18.