AeroVironment Inc. shares fell 23 percent in after-hours trading on Tuesday after the company slashed its guidance and reported lower-than-expected fiscal third-quarter revenue and profit, largely due to reduced orders from its government clients.
The Monrovia company, which specializes in unmanned aircraft and alternative energy, said that it believes the expected orders are merely delayed rather than lost. But investors appeared concerned that the company would be hurt by the federal budget cuts related to the sequester that went into effect last week.
After the Tuesday markets closed, AeroVironment reported net income of $3.9 million (17 cents a share), 32 percent (9 cents) lower than in the same period a year earlier. Revenue fell more than 34 percent to $47 million.
Chief Executive Tim Conver said in a statement: “We continue to see multiple opportunities for growth in fiscal 2014 and beyond based on (our) leading market positions and significant new development activities for both defense and non-defense solutions.”
The company cut its guidance for fiscal 2013 net income to 30 cents to 50 cents a share, compared with its earlier guidance in the $1.41 to $1.51 a share range.
Shares earlier closed down 16 cents, or less than 1 percent, to $21.69 on the Nasdaq. They fell more than 23 percent to $16.65 in after-market trading.