In a Wednesday interview with CNBC’s Jim Cramer, AeroVironment CEO Wahid Nawabi reviewed the most recent quarter and suggested that the defense contractor’s drones were affordable compared to the competition.
“Our drones are incredibly affordable relative to the drones that many of our adversaries design and build,” he said. “The effectiveness of our drones and our loitering munitions versus our competitors and versus adversaries is a huge, huge difference and gap.”
The company’s drones have been used in Ukraine since the beginning of its war with Russia, and Wahid claimed that the Ukrainian military relies heavily on the weapons, calling them the “workhorse” of the country.
AeroVironment shares jumped last week after the Department of Defense announced a nearly $1 billion contract with the company to “provide an organic, stand-off capability to dismounted infantry formations capable of destroying tanks, light armored vehicles, hardened targets, defilade and personnel targets.”
The company released its quarterly report after close on Wednesday and Wall Street’s expectations for revenue and earnings but failed to raise guidance like investors had hoped. The stock dipped slightly in extended trading.
