Why Shares of AeroVironment, Inc. Soared Today
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of drone maker AeroVironment, jumped 20% today after the company released earnings.
So what: Fiscal third-quarter revenue jumped 47% from a year ago, to $69.2 million, and net income nearly tripled, to $11.2 million. Earnings per share of $0.49 was well over the estimate of $0.19 from analysts.
Now what: Not only were quarterly results solid, but strategically, the company is positioning itself for strong growth over the next decade. Drone use is only going to expand, and AeroVironment has positioned itself well as an electric vehicle supplier, as well. If you have a long-term investing horizon, I think this will be a great stock; but the results can be very volatile quarter to quarter.
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The article Why Shares of AeroVironment, Inc. Soared Today originally appeared on Fool.com.Travis Hoium manages an account that owns shares of AeroVironment. The Motley Fool recommends AeroVironment. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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