It's been a mediocre week for AeroVironment, Inc. (NASDAQ:AVAV) shareholders, with the stock dropping 20% to US$163 in the week since its latest second-quarter results. Revenue of US$188m surpassed estimates by 3.9%, although statutory earnings per share missed badly, coming in 51% below expectations at US$0.27 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for AeroVironment

Taking into account the latest results, the consensus forecast from AeroVironment's seven analysts is for revenues of US$823.5m in 2025. This reflects a meaningful 8.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 61% to US$2.80. Before this earnings report, the analysts had been forecasting revenues of US$828.0m and earnings per share (EPS) of US$2.82 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of US$231, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic AeroVironment analyst has a price target of US$245 per share, while the most pessimistic values it at US$219. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the AeroVironment's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of AeroVironment'shistorical trends, as the 17% annualised revenue growth to the end of 2025 is roughly in line with the 18% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.4% annually. So although AeroVironment is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$231, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple AeroVironment analysts - going out to 2027, and you can see them free on our platform here.

You can also see our analysis of AeroVironment's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.