AeroVironment (AVAV) Q4 Earnings Report Preview: What To Look For

Aerospace and defense company AeroVironment (NASDAQ:AVAV) will be reporting earnings this Tuesday after market close. Here’s what to expect.

AeroVironment beat analysts’ revenue expectations last quarter, reporting revenues of $472.5 million, up 151% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.

Is AeroVironment a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting AeroVironment’s revenue to grow 185% year on year, a reversal from the 10.2% decrease it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. AeroVironment rarely misses Wall Street’s revenue estimates.

Looking at AeroVironment’s peers in the defense contractors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Leonardo DRS delivered year-on-year revenue growth of 8.1%, beating analysts’ expectations by 7%, and RTX reported revenues up 12.1%, topping estimates by 7%. Leonardo DRS traded up 11.1% following the results while RTX was also up 2.7%.

Read our full analysis of Leonardo DRS’s results here and RTX’s results here.

The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the defense contractors stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 8.3% on average over the last month. AeroVironment is down 16.2% during the same time and is heading into earnings with an average analyst price target of $355.17 (compared to the current share price of $230.00).

P.S. STOP buying the AI stocks everyone's talking about. The real money? It’s in the profitable pick nobody’s watching yet. We’ve identified an AI profit machine that’s flying under Wall Street’s radar—for now. We can’t keep this research public forever—grab your FREE copy before we pull it offline. GO HERE NOW.