It was a good week for the Correct Call Calendar readers who took advantage of our 4 Trading Earnings Picks.
- KIRK is up more than 15% since they reported EPS.
- SCVL is up 18% since the morning they reported
- ARUN and UEPS appear ready to move today after reporting earnings last night.
AeroVironment, Inc. (AVAV) is set to report earnings after the market closes on Tuesday, September 1 (AVAV Webcast). AV is a leader in the design, development, production, and support of Unmanned Aircraft Systems (UAS) and efficient electric energy systems for government and commercial applications. The company’s small UAS are used extensively by agencies of the U.S. Department of Defense and increasingly by allied military services to provide situational awareness to tactical operating units through real-time, airborne reconnaissance, surveillance, and target acquisition. AV’s PosiCharge® fast charge systems eliminate battery changing for electric industrial vehicles in factories, airports, and distribution centers.
AVAV is expected to earn 13 cents for its 4th quarter. We expect the Alternative Energy & Defense Company to announce earnings that will meet or beat investors’ and analysts’ expectations.
Six of the last 7 times Aero reported earnings, the stock has moved up on average of more than 10%. The last 10 earnings reports have seen the company post 9 upside earnings surprises. Seven of the 9 surprises rewarded shareholders with gains.
Point & Figure technical analysis of AeroViro’s stock chart says a traditional 3 box reversal puts in a bullish price objective of $49.5. The stock chart also shows clear support for AVAV at $28. A positive earnings surprise pushes this stock to $32; a miss and the stock drops to $24 making AVAV a nice options straddle candidate.
