AVAV surged 6% on delayed earnings digestion after posting record Q1 revenue of $481M and a $1.5B funded backlog up 37% year over year. ONDS gained just 2% and RCAT slipped 0.6% while the drone ETF DRNZ rose only 0.4%, confirming today's move belongs entirely to AeroVironment. Despite the rally, AVAV remains 36% below its year-start price, and investors should watch for follow-through sessions before sizing up exposure.
Read More: Avoid these 13 retirement mistakes before they derail your future (sponsor) AeroVironment (NASDAQ:AVAV) stock is up 6% to $155.22 midday Monday, extending a post-earnings recovery the rest of the drone group hasn't joined. The move follows the defense contractor's fiscal first-quarter results reported earlier this month. The gain still leaves AeroVironment shares down 36% year to date.
Ondas (NASDAQ:ONDS) stock is rising 2% to $7.37 on the same session, giving AeroVironment only a fractional tailwind from a closer counter-drone peer. Red Cat (NASDAQ:RCAT) stock is essentially unchanged, down 0.6% to $7.92, so neither peer is confirming the bid AeroVironment is getting today. The rest of the group is quiet on a day AeroVironment is moving hard.
Meanwhile, the REX Drone ETF (NASDAQ:DRNZ) is up 0.4%, and the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.2%. A drone fund that's barely positive on a day AeroVironment stock is rising many times more places today's action inside one name rather than across the sector. AeroVironment can't lean on a sector tailwind here, and that's what turns this into a single-name story.
AeroVironment reported record fiscal first-quarter revenue of $480.5 million and funded backlog of $1.5 billion after the close on September 9. That backlog was 37% higher than a year earlier, and management reaffirmed full-year guidance rather than raising it. The reaffirmation sets a firm floor for expectations for AeroVironment without stretching the story ahead of execution risk.
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