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AeroVironment, Inc. AVAV is slated to report third-quarter fiscal 2025 results on March 4, 2025, after market close.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

The company boasts a four-quarter average earnings surprise of 54.69%. Solid revenue growth expected from the majority of its segments must have bolstered its fiscal third-quarter earnings amid impacts of higher expenses.

AeroVironment, Inc. Price and EPS Surprise

AeroVironment, Inc. price-eps-surprise | AeroVironment, Inc. Quote

AVAV’s LMS Unit to Post Solid Sales

Increased global demand for AVAV’s loitering munitions systems, backed by the current global conflicts as well as need for resupply of these systems from the U.S. Department of Defense (DoD) must have bolstered the top line of the Loitering Munitions Systems (“LMS”) segment.

The Zacks Consensus Estimate for the segment’s quarterly revenues is pegged at $92.3 million, indicating a solid 60% increase from the top line reported a year ago.

AVAV’s MacCready Works Unit Also Holds Potential

Solid service revenues, due to an increase in customer-funded research and development and engineering services efforts, are likely to have boosted revenue growth for its MacCready Works (“MW”) business segment.

The Zacks Consensus Estimate for the segment’s fiscal third-quarter revenues is pegged at $21.1 million, indicating 35% growth from the year-ago quarter’s reported figure.

AVAV’s UxS Unit Likely to Post Dismal Figures

Declining product shipments of AVAV’s family of small unmanned aerial systems as well as UGV product systems due to lower international sales to Ukraine might have had an adverse impact on the overall top-line performance of the company’s Uncrewed Systems (UxS) business unit.

Fiscal Q3 Expectations

With two of AeroVironment’s three business segments expected to report solid top-line improvement, the overall revenue growth prospects of AVAV remain bright. The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $189.3 million, which suggests a 1.4% rise from the year-ago quarter’s level.

Such a solid top-line projection is likely to have aided AVAV’s quarterly bottom line. However, an increase in sales and marketing expense, caused by an increase in bid and proposal activity along with employee-related costs due to an increase in average headcount, might have put a downward pressure on its operating margin, thereby adversely impacting its overall earnings. An increase in deal and integration costs is likely to have hurt AVAV’s quarterly bottom-line figures.

The Zacks Consensus Estimate for earnings is pegged at 58 cents per share, which indicates a decline of 7.9% from the prior-year reported figure.

What the Zacks Model Unveils for AVAV

Our proven model does not conclusively predict an earnings beat for AeroVironment this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below.

Earnings ESP: AVAV has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, AeroVironment sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Recent Defense Releases

Teledyne Technologies Inc. TDY reported fourth-quarter 2024 adjusted earnings of $5.52 per share, which surpassed the Zacks Consensus Estimate of $5.23 by 5.5%. Total sales were $1.50 billion, which beat the consensus estimate of $1.45 billion by 3.7%.

Textron Inc. TXT reported fourth-quarter 2024 adjusted earnings of $1.34 per share, which beat the Zacks Consensus Estimate of $1.25 by 7.2%. The company reported total revenues of $3.61 billion, which missed the consensus estimate of $3.74 billion by 3.5%.

Hexcel Corporation HXL reported fourth-quarter 2024 adjusted earnings of 52 cents per share, which surpassed the Zacks Consensus Estimate of 51 cents by 2%. The company’s net sales totaled $473.8 million, which beat the consensus estimate of $471 million by 0.6%.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

HEICO Corporation’s HEI first-quarter fiscal 2025 earnings per share (EPS) of $1.20 beat the Zacks Consensus Estimate of 93 cents by 29%. The bottom line also improved 46.3% from the prior-year quarter’s 82 cents.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The year-over-year improvement in the bottom line can be attributed to robust sales and higher operating income from the prior-year quarter. The improvement was also boosted by a discrete income tax benefit from stock option exercises.

HEI’s Total Sales

The company’s net sales increased 14.9% year over year to $1.03 billion. The figure also beat the Zacks Consensus Estimate of $0.97 billion by 6.1%.

The year-over-year upside was driven by increased demand across the Flight Support Group's product lines and for the defense, space and aerospace products of the Electronic Technologies Group.

Heico Corporation Price, Consensus and EPS Surprise

Heico Corporation price-consensus-eps-surprise-chart | Heico Corporation Quote

HEICO’s Operational Update

HEICO’s cost of sales increased 13.6% year over year to $624.6 million.

The company’s selling, general and administrative (SG&A) expenses rose 7.4% to $178.9 million.

Interest expenses declined 15.9% to $32.5 million from $38.6 million in the prior-year quarter.

HEI’s Segmental Performance

Flight Support Group: Net sales from this segment surged 15.3% year over year to $713.2 million. This rise was driven by strong organic growth of 13% and the positive impact of its fiscal 2023 and 2024 acquisitions.

The segment’s operating income soared 22.1% year over year to $166.1 million. This increase was due to solid net sales growth, SG&A expense efficiencies realized from the net sales growth and an improved gross profit margin.

Electronic Technologies Group: The segment’s net sales increased 15.5% to $330.3 million. This rise was driven by strong organic growth of 11% and the positive impact of its fiscal 2023 and 2024 acquisitions.

The segment’s operating income increased 38.2% year over year to $76.5 million. This increase was due to solid net sales growth, SG&A expense efficiencies realized from the net sales growth and an improved gross profit margin.

HEI’s Financial Details

As of Jan. 31, 2025, HEI’s cash and cash equivalents totaled $165.5 million compared with $162.1 million as of Oct. 31, 2024.

Cash flow provided by operating activities was $203 million during the first quarter of fiscal 2025, reflecting an 81.8% rise from the prior-year period’s level.

HEICO reported a long-term debt (net of current maturities) of $2.35 billion as of Jan. 31, 2025, up from $2.23 billion as of Oct. 31, 2024.

HEICO’s Zacks Rank

HEICO currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases

Teledyne Technologies Inc. TDY reported fourth-quarter 2024 adjusted earnings of $5.52 per share, which surpassed the Zacks Consensus Estimate of $5.23 by 5.5%. Total sales were $1.50 billion, which beat the consensus estimate of $1.45 billion by 3.7%.

Textron Inc. TXT reported fourth-quarter 2024 adjusted earnings of $1.34 per share, which beat the Zacks Consensus Estimate of $1.25 by 7.2%. The company reported total revenues of $3.61 billion, which missed the consensus estimate of $3.74 billion by 3.5%.

Hexcel Corporation HXL reported fourth-quarter 2024 adjusted earnings of 52 cents per share, which surpassed the Zacks Consensus Estimate of 51 cents by 2%. The company’s net sales totaled $473.8 million, which beat the consensus estimate of $471 million by 0.6%.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Kratos Defense & Security Solutions, Inc. KTOS reported fourth-quarter 2024 adjusted earnings of 13 cents per share, up 8.3% from 12 cents in the prior-year quarter. The bottom line also surpassed the Zacks Consensus Estimate of nine cents per share by 44.4%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Kratos Defense reported GAAP earnings of three cents per share compared with two cents in the fourth quarter of 2023.

The company reported 2024 adjusted earnings of 49 cents per share, which were higher than the year-ago figure of 42 cents. The full-year bottom line also surpassed the Zacks Consensus Estimate of 46 cents per share.

KTOS’ Total Revenues

Total revenues were $283.1 million, which missed the Zacks Consensus Estimate of $288 million by 1.8%. The figure, however, rose 3.4% from $273.8 million recorded in the year-ago quarter.

The year-over-year improvement can be attributed to the Unmanned Systems and Kratos Government Solutions segments’ revenue growth.

The company reported total revenues of $1.14 billion in 2024, which were higher than $1.04 billion in 2023. The full-year top line was in line with the Zacks Consensus Estimate.

Kratos Defense & Security Solutions, Inc. Price, Consensus and EPS Surprise

Kratos Defense & Security Solutions, Inc. price-consensus-eps-surprise-chart | Kratos Defense & Security Solutions, Inc. Quote

Operational Update of Kratos Defense

Kratos Defense’s selling, general and administrative expenses increased 1.1% year over year. Research and development expenses rose 32.5%. Depreciation expenses surged 19% year over year.

Expenses related to the amortization of intangible assets decreased 8.7% year over year.

The company reported operating income of $3 million, which declined from the year-ago quarter’s $11.7 million.

It posted a consolidated book-to-bill ratio of 1.5-1.0, with bookings worth $434.2 million.

The total backlog at the end of the fourth quarter was $1.45 billion compared with $1.29 billion at the end of the third quarter of 2024.

KTOS’ Segmental Performance

Unmanned Systems: Net revenues improved 10.3% year over year to $61.1 million.

Kratos Government Solutions: Net revenues improved 1.6% to $222 million on a year-over-year basis.

Financial Details of KTOS

As of Dec. 29, 2024, cash and cash equivalents totaled $329.3 million, up from $72.8 million as of Dec. 31, 2023.

The long-term debt amounted to $174.6 million as of Dec. 29, 2024, down from $219.3 million recorded as of Dec. 31, 2023.

The net cash flow from operating activities amounted to $49.7 million during 2024 compared with $65.2 million at the end of 2023.

Kratos Defense’s 2025 Guidance

Kratos Defense has introduced its first-quarter and full-year 2025 guidance.

KTOS projects first-quarter 2025 revenues to be in the range of $285-$295 million. The Zacks Consensus Estimate for revenues is pegged at $303.5 million, higher than the company’s guided range.

KTOS expects 2025 revenues to be in the $1.26-$1.29 billion range. The Zacks Consensus Estimate for revenues is pegged at $1.28 million, almost in line with the mid-point of the company’s guided range.

Kratos Defense expects operating cash flows to be in the range of $50-$60 million and free cash outflow to be in the range of $75-$85 million for 2025.

KTOS’ Zacks Rank

Kratos Defense currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases

Teledyne Technologies Inc. TDY reported fourth-quarter 2024 adjusted earnings of $5.52 per share, which surpassed the Zacks Consensus Estimate of $5.23 by 5.5%. Total sales were $1.50 billion, which beat the consensus estimate of $1.45 billion by 3.7%.

Textron Inc. TXT reported fourth-quarter 2024 adjusted earnings of $1.34 per share, which beat the Zacks Consensus Estimate of $1.25 by 7.2%. The company reported total revenues of $3.61 billion, which missed the consensus estimate of $3.74 billion by 3.5%.

Hexcel Corporation HXL reported fourth-quarter 2024 adjusted earnings of 52 cents per share, which surpassed the Zacks Consensus Estimate of 51 cents by 2%. The company’s net sales totaled $473.8 million, which beat the consensus estimate of $471 million by 0.6%.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Shares of Curtiss-Wright Corporation CW lost 5.5% to reach $323.20 on Feb. 14, following the release of its fourth-quarter 2024 results.

The company reported adjusted earnings per share (EPS) of $3.27, which beat the Zacks Consensus Estimate of $3.08 by 6.2%. The bottom line also improved 3.5% from the year-ago quarter’s level of $3.16 per share.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The company reported GAAP earnings of $3.09 per share, down 0.6% from the prior-year period’s $3.11.

The year-over-year downside in GAAP earnings can be attributed to lower operating income and higher interest expense incurred in the fourth quarter of 2024 compared with the year-ago quarter.

CW reported 2024 adjusted earnings of $10.90 per share, which were higher than the year-ago figure of $9.38.

CW’s Operational Performance

The company’s net sales of $824.3 million increased 4.9% year over year. Also, the top line surpassed the Zacks Consensus Estimate of $785 million by 4.9%.

The company reported revenues of $3.12 billion in 2024, which were higher than $2.85 billion in 2023.

The company reported an adjusted operating income of $163 million, which was in line with the prior-year quarter. The adjusted operating margin, however, contracted 100 basis points from 20.8% to 19.8%. This downside was primarily due to higher investments in research and development in all three segments, as well as an unfavorable mix in both the Defense Electronics and Naval & Power segments.

Curtiss-Wright’s total backlog at the end of the fourth quarter was $3.4 billion, which increased 20% from the 2023-end backlog figure. This improvement can be attributed to higher demand from both the aerospace and defense markets, as well as commercial markets.

New orders of $939 million rose 37% year over year, driven by the strong demand for the company’s aerospace and defense products.

Curtiss-Wright Corporation Price, Consensus and EPS Surprise

Curtiss-Wright Corporation price-consensus-eps-surprise-chart | Curtiss-Wright Corporation Quote

CW’s Segmental Performance

Aerospace & Industrial: Sales in this segment improved 5% year over year to $250.9 million. The upside was driven by higher commercial aerospace market sales, backed by strong demand as well as increased OEM sales of sensor products and surface treatment services on narrowbody and widebody platforms. Higher revenues from the aerospace defense market, driven by higher sales of CW’s actuation equipment principally on the F-35 and other fighter jet programs, also contributed favorably to this unit’s top line.

The adjusted operating income improved 22% to $54 million. Also, the unit’s adjusted operating margin expanded 280 bps to 21.3%. The increase was due to the favorable absorption of higher revenues and the benefits of the company’s restructuring and cost-containment initiatives.

Defense Electronics: Sales in this segment declined 5% year over year to $227.5 million. This decline was due to decreased sales in the Ground defense market, primarily on account of the unfavorable timing of sales of embedded computing equipment on the Stryker ground combat vehicle. Lower revenues from the naval defense market due to the unfavorable timing of sales of embedded computing equipment supporting various domestic and international programs also affected this segment’s top line.

The adjusted operating income decreased 20% to $55 million. The adjusted operating margin contracted 450 bps to 24.3%, on account of unfavorable absorption on lower defense revenues, an unfavorable mix of products and higher investment in research and development.

Naval & Power: Sales in this segment increased 12% year over year to $345.9 million, driven by higher demand and timing of revenues on the Virginia-class and Columbia-class submarine programs, as well as higher growth for aircraft handling systems to international customers. Increased commercial nuclear aftermarket sales supporting the maintenance of U.S. operating reactors also boosted this unit’s top-line growth.

The segment's adjusted operating income increased 11% to $66 million. The adjusted operating margin, however, contracted 20 bps to 19.1% due to an unfavorable mix of products and higher investment in research and development.

Financial Position of CW

CW’s cash and cash equivalents as of Dec. 31, 2024, were $385 million compared with $406.9 million as of Dec. 31, 2023.

The long-term debt was $0.96 billion as of the same date compared with $1.05 billion as of Dec. 31, 2023.

The net cash flow from operating activities amounted to $544.3 million during 2024 compared with $448.1 million in the prior year period.

The adjusted free cash flow at the end of Dec. 31, 2024, was $483.3 million compared with $413.4 million in the previous year.

2025 Guidance of CW

Curtiss-Wright issued its financial guidance for 2025.

CW expects to generate adjusted earnings in the band of $12.10-$12.40 per share. The Zacks Consensus Estimate for earnings is pegged at $11.92 per share, which lies below the company’s guided range.

The company expects GAAP earnings to be in the range of $11.80-$12.10 per share.

Curtiss-Wright expects to generate sales in the range of $3.34-$3.39 billion. The Zacks Consensus Estimate for sales is pegged at $3.35 billion, which lies below the mid-point of the company’s guided range.

The company expects to generate free cash flow in the band of $485-$505 million.

CW’s Zacks Rank

Curtiss-Wright currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases

Teledyne Technologies Inc. TDY reported fourth-quarter 2024 adjusted earnings of $5.52 per share, which surpassed the Zacks Consensus Estimate of $5.23 by 5.5%. Total sales were $1.50 billion, which beat the consensus estimate of $1.45 billion by 3.7%.

Textron Inc. TXT reported fourth-quarter 2024 adjusted earnings of $1.34 per share, which beat the consensus estimate of $1.25 by 7.2%. The company reported total revenues of $3.61 billion, which missed the consensus estimate of $3.74 billion by 3.5%.

Hexcel Corporation HXL reported fourth-quarter 2024 adjusted earnings of 52 cents per share, which surpassed the Zacks Consensus Estimate of 51 cents by 2%. The company’s net sales totaled $473.8 million, which beat the consensus estimate of $471 million by 0.6%.

Zacks Investment Research

Hexcel said late Tuesday that it priced a $300 million offering of unsecured 5.875% senior notes due 2035.

The notes were priced at 99.985% of face value, the company said.

The company intends to use the net proceeds to fund the redemption of unsecured 4.7% senior notes due 2025, of which $300 million is outstanding.

The offering is expected to close on Feb. 26.