Shares of AeroVironment (AVAV) plummeted 18.25% in pre-market trading on Wednesday, following the defense technology company's disappointing fiscal third-quarter results and lowered guidance for the full year.

The company reported a quarterly revenue of $167.6 million, missing Wall Street estimates of $196.4 million and reflecting a 10% year-over-year decline. This miss was primarily attributed to unprecedented high winds, fires, and power outages in Southern California, which disrupted AeroVironment's manufacturing operations and supply chain logistics.

AeroVironment also posted an adjusted earnings per share of $0.30, widely missing analysts' expectations of $0.63. The company reported a net loss of $1.8 million for the quarter, compared to a net income of $13.9 million in the same period last year.

Adding to investors' concerns, AeroVironment lowered its full-year revenue guidance to a range of $780 million to $795 million, down from previous estimates of $819 million. The company also cut its adjusted earnings per share guidance to $2.92 to $3.13, well below the $3.43 estimate.

While AeroVironment cited the extreme weather conditions in California as a key factor behind the disappointing results, the company also revealed that it had received stop-work orders from the U.S. government on certain foreign military sales contracts, representing approximately $13 million in orders expected to be delivered in the fourth quarter.

Despite these challenges, AeroVironment remains optimistic about its long-term growth prospects, driven by a record backlog of $764 million and increasing demand for its autonomous systems and loitering munitions solutions. The company is actively expanding its production capacity, including a new Switchblade production facility in Utah that will be five times larger than the current plant.

AeroVironment's CEO, Wahid Nawabi, expressed confidence in the company's ability to navigate the current challenges and capitalize on the global demand for its cutting-edge defense technologies, particularly in the areas of AI-driven autonomous warfare systems and counter-drone solutions.