Why AeroVironment (AVAV) Is Gaining on Wednesday

NEW YORK (TheStreet) -- AeroVironment (AVAV) is gaining on Wednesday after posting better-than-expected earnings and sales for its January-ended third quarter.

By market open, shares had spiked 10.8% to $35.16.

The aerospace and defense contractor recorded net income of 49 cents a share. Analysts surveyed by Thomson Reuters had anticipated 19 cents a share.

Revenue of $69.2 million, a 47% year-over-year increase, beat consensus by $4.3 million.

The Monrovia, Calif.-based business reiterated its guidance for the April-ending fiscal 2014. Revenue is expected between $230 million and $250 million, with earnings of 35 cents to 50 cents a share.

Analysts expect full-year revenue of $246.62 million and per-share earnings of 35 cents.

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TheStreet Ratings team rates AEROVIRONMENT INC as a Hold with a ratings score of C. The team has this to say about their recommendation:

"We rate AEROVIRONMENT INC (AVAV) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."

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