AeroVironment reported better-than-expected quarterly results and shares jumped as investors breathed a sigh of relief.

Monday evening, the drone and defense technology provider announced fiscal fourth-quarter earnings per share of $1.84 from sales of $642 million. Wall Street was looking for earnings per share of $1.46 from sales of $556 million, according to FactSet.

A year ago, AeroVironment reported EPS of $1.61 from sales of $275 million. The year-ago quarter was just before AeroVironment closed its acquisition of BlueHalo.

For fiscal year 2027, AeroVironment expects earnings per share between $3.02 and $3.34 from sales of between $2.1 billion and $2.2 billion. Wall Street projects earnings per share of $3.84 from sales of $2.2 billion.

Guidance looks light. Still, it was enough early on. Shares jumped almost 12% in after-hours trading, to $155.38. AeroVironment shares gained 0.8% in regular trading, closing at $139, while the S&P 500 and Dow Jones Industrial Average gained 1.2% and 0.6%, respectively.

AeroVironment has had a tough time lately. The government recently canceled a contract to deliver BADGER phased-array antenna systems to support the Satellite Communication Augmentation Resource (SCAR) program. Then, on June 22, the company announced an accounting error when writing down assets. AeroVironment stock was above $392 when the government issued a stop-work order on the SCAR program. Shares were above $150 before the accounting error was disclosed.

Through Monday's trading, AeroVironment stock was down 43% year to date and 50% over the past 12 months. That performance might be why investors reacted positively to the quarterly report.

"Fiscal 2026 marked a transformational year for AeroVironment, which included the completion of our largest acquisition, meaningful investments toward diversifying our portfolio in critical areas aligned to our customer's highest priorities," said CEO Wahid Nawabi in a news release. "AV is well-positioned to capture the rising global demand across lethal and nonlethal drones, counter-[drone], space, and advanced technologies."

The portfolio looks right for today's military. Now, the stock needs to reflect that.

Write to Al Root at allen.root@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

June 29, 2026 17:07 ET (21:07 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.