The upcoming report from AeroVironment (AVAV) is expected to reveal quarterly earnings of $0.58 per share, indicating a decline of 7.9% compared to the year-ago period. Analysts forecast revenues of $189.25 million, representing an increase of 1.4% year over year.

The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

That said, let's delve into the average estimates of some AeroVironment metrics that Wall Street analysts commonly model and monitor.

The consensus estimate for 'Revenue- Contract Services' stands at $35.79 million. The estimate indicates a year-over-year change of +16.7%.

Analysts expect 'Revenue- Product Sales' to come in at $160.30 million. The estimate suggests a change of +2.8% year over year.

The combined assessment of analysts suggests that 'Gross margin- Contract services' will likely reach $8.96 million. Compared to the present estimate, the company reported $10.85 million in the same quarter last year.

The collective assessment of analysts points to an estimated 'Gross margin- Product sales' of $64.91 million. Compared to the current estimate, the company reported $56.44 million in the same quarter of the previous year.

View all Key Company Metrics for AeroVironment here>>>

AeroVironment shares have witnessed a change of -10.3% in the past month, in contrast to the Zacks S&P 500 composite's -2.2% move. With a Zacks Rank #1 (Strong Buy), AVAV is expected outperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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This article originally published on Zacks Investment Research (zacks.com).

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