AeroVironment's fiscal 3Q profit falls 24 percent

MONROVIA, Calif. - AeroVironment Inc., which makes unmanned aircraft, said after the market closed Monday that its profit in the fiscal third quarter fell 24 percent as an increased cost of sales, weaker profit margin and higher research and development costs offset an increase in sales.

The company also cut its revenue outlook, and shares dropped sharply in premarket trading Tuesday.

For the three months ended Jan. 31, net income fell to $4.5 million, or 21 cents per share, from $6 million, or 28 cents per share, in the year-earlier period.

Revenue rose 8 percent to $52.2 million from $48.5 million.

Analysts polled by Thomson Reuters expected earnings per share of 28 cents and revenue of $65.3 million.

Its research and development expense climbed by $1 million, and its cost of product sales increased by about $9 million.

In premarket trading Tuesday, shares plunged $9.58, or 31.3 percent, to $21. The stock has ranged from $19.80 to $41.22 over the past year.

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