AeroVironment (AVAV) stock gained ground early Monday, with the drone manufacturer poised to report fiscal third-quarter 2024 earnings and revenue after the markets close.
John Deere is looking to cash in. That’s because it takes more than grit for today’s farmers to drive tractors, till soil and harvest crops. About 30% of farmland in the U.S. lacks sufficient connectivity, according to Deere. So in January 2024, Elon Musk’s SpaceX and its Starlink satellites announced a partnership with the farming giant to provide Wi-Fi for the company’s farm machinery. Experts say the deal could be a boon for both companies.” vid-name=”Elon Musk And Starlink Satellites Are Disrupting The Farming Industry. How Deere Is Looking To Cash In.” vid-cat=”Industry Insights” vid-date=”02/29/2024″ vid-date-tmsp=”1709196831″ vid-image=”https://www.investors.com/wp-content/uploads/2024/02/IBD_II_starlink022924-640×360.jpg” vid-authors=”MEREDITH HEYMAN, MIKE JUANG”>
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Analysts expect the drone maker to report flat adjusted earnings at 33 cents per share on 27% revenue growth, to $170.6 million, according to FactSet. For the full fiscal year, Wall Street forecasts EPS growing 114% to $2.73 and sales hitting $700.8 million, up 30% compared to last year.
On Dec. 6, AeroVironment issued guidance, with expectations of EPS between $2.46-$2.70 and revenue of $685 million-$705 million.
AVAV stock advanced 1.5% to 130.65 Monday during market action. The defense stock had jumped more than 7% before the market opened.
On Friday, AVAV gained 1.5% to 128.73. Earlier, AVAV passed what aggressive investors might chart as an early entry at 127.22. It remains still well below an official 143.99 buy point, its Dec. 4, 2023, high.
AeroVironment makes drones used by the Air Force for research, and the company reportedly is the U.S. military’s top drone supplier overall. It also sells to NASA and developed an early model electric vehicle.
The Arlington, Va.-based outfit is also involved in missile production. The company manufactures Switchblade “suicide” drones that have been utilized in Ukraine since the beginning of Russia’s invasion, as well as Puma hand-launched recon drones.
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