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It's been a mediocre week for AeroVironment, Inc. (NASDAQ:AVAV) shareholders, with the stock dropping 20% to US$163 in the week since its latest second-quarter results. Revenue of US$188m surpassed estimates by 3.9%, although statutory earnings per share missed badly, coming in 51% below expectations at US$0.27 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for AeroVironment
Taking into account the latest results, the consensus forecast from AeroVironment's seven analysts is for revenues of US$823.5m in 2025. This reflects a meaningful 8.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 61% to US$2.80. Before this earnings report, the analysts had been forecasting revenues of US$828.0m and earnings per share (EPS) of US$2.82 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
There were no changes to revenue or earnings estimates or the price target of US$231, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic AeroVironment analyst has a price target of US$245 per share, while the most pessimistic values it at US$219. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the AeroVironment's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of AeroVironment'shistorical trends, as the 17% annualised revenue growth to the end of 2025 is roughly in line with the 18% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.4% annually. So although AeroVironment is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.