The value of small cap stock for AeroVironment, Inc. (NASDAQ:AVAV) was down on Thursday after the company reported a larger quarterly loss than analysts had expected, which was worsened by lower sales of its drone airplane and reflected defense budget cuts.
According to Bloomberg, the company's falling stock may have received some support, however, from the firm's full fiscal year forecast, which actually surpassed what analysts expected.
Timothy Conver, chairman and CEO of AeroVironment, said the lower revenue in the fiscal first quarter was no surprise "because we are staffed and investing to achieve the growth we expect in the second half of this year and beyond."
AeroVironment's full-year revenue estimates were said to be $1.41 to $1.51 per share, the median of which topped analysts' forecasts for $1.44 per share.
Still, the company reported a 5 percent drop in revenue, which came in at $58.7 million in the first fiscal quarter of 2012, with drone sales falling by $3.4 million.
As of 4:16 p.m. on Thursday, September 6, the company's shares were down 6.4 percent to $22.68 each.