AeroVironment, Inc.’s (AVAV) share price has logged an impressive performance in 2008, advancing along a steady upward trend as many other segments of the market have weakened. The company’s second-quarter results were solid and the analyst community remains bullish on the company’s current and next-year period.

Company Description

AeroVironment, Inc. designs and produces unmanned aircraft systems and alternative energy systems. The company primarily serves the U.S. government but also sells to corporate customers. AeroVironment was founded in 1971 and has a marker cap of $638 million.

Second-Quarter Results

AeroEnvironment’s share price has continued to advance over the last 12 weeks, no doubt helped by the company’s solid second-quarter results, reported on Sep 9.

Revenue was up 9% from last year to $53.6 million. Net income came in at $4.8 million, up 25% from last year’s $3.8 million. This produced earnings of 22 cents per share, 4 cents ahead of analyst estimates.

The company noted that its revenue growth was fueled by its unmanned aircraft systems division, with sales increasing by $4.2 million from last year.

Consistent Results

It was the fourth time in four quarters that the company has surprised and beat analyst estimates, having done so by an average of 3 cents, or 12.5%.

Guidance and Estimates

AeroVironment also reaffirmed its revenue guidance for fiscal 2009, saying it expects growth to fall between 20% and 25%, with operating margins falling between 12% and 14%.

The analyst community is bullish on the company’s long-term prospects, with the next-year estimate pegged at $1.39 per share, a 19% earnings growth projection.

The Chart

Shares of AVAV have been rallying for most of 2008, advancing from just above $18 in March to a recent high at $38.50. A long-term trend line has been in play during this stock’s upward ascent and has continues to provide support. Take a look below.

Content Courtesy: Zacks Investment Research

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