Jim Cramer Advised Against AeroVironment Ahead of Record Earnings Beat
AeroVironment (NASDAQ:AVAV) reported a significant earnings beat in its fiscal Q1 2027, with adjusted EPS reaching $0.59—well above the consensus estimate—and revenue exceeding expectations by nearly $24 million. The company also secured a landmark $464 million contract for directed energy systems and saw record funded backlog of $1.5 billion. Despite these strong results, GAAP net income remained negative at -$5.07 million, free cash flow was -$36 million, and management did not raise its full-year guidance. Jim Cramer had advised investors to avoid AVAV just days before the earnings report due to competitive pressures in defense tech. However, shares initially dropped 5% ahead of the results but surged pre-market after the beat. The stock is still down nearly 40% year-to-date despite the positive numbers and strategic wins like the LOCUST program. While management expressed optimism about future growth from directed energy systems and reconnaissance programs, uncertainty remains around congressional budget approvals and back-half revenue weighting.
Tickers: $AVAV
Topics: AeroVironment AVAV drone stock earnings beat Jim Cramer