Can AeroVironment Meet These Numbers?

AeroVironment (Nasdaq: AVAV  ) is expected to report Q3 earnings on March 5. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict AeroVironment's revenues will grow 23.4% and EPS will grow 46.2%.

The average estimate for revenue is $88.8 million. On the bottom line, the average EPS estimate is $0.38.

Revenue details
Last quarter, AeroVironment tallied revenue of $80.3 million. GAAP reported sales were 0.1% lower than the prior-year quarter's $80.4 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.39. GAAP EPS of $0.39 for Q2 were 30% higher than the prior-year quarter's $0.30 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 44.4%, 630 basis points better than the prior-year quarter. Operating margin was 16.3%, 440 basis points better than the prior-year quarter. Net margin was 10.9%, 270 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $351.9 million. The average EPS estimate is $1.43.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 599 members out of 618 rating the stock outperform, and 19 members rating it underperform. Among 125 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 124 give AeroVironment a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AeroVironment is hold, with an average price target of $28.73.

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