AVAV AeroVironment Inc

Drone maker AeroVironment Inc. posted higher earnings for its latest quarter, in part due to a $1.1 million tax benefit, though its revenue declined amid sagging sales in its efficient energy systems division.

The company also raised its gross profit margin guidance for the year ending in April by two points to a range of 38% to 39.5% and backed its revenue view.

Shares of the company, up 4.2% over the past year, rose 8%to $28.70 after hours.

AeroVironment said that during its fiscal third-quarter, sales in its unmanned-aircraft-systems segment—which accounts for some 90% of revenue—climbed 5.3%, offsetting a 38% fall in its efficient-energy-systems branch.

AeroVironment makes drones and rechargeable-battery technology for electric vehicles. The company, founded in 1981, traces its roots to the Gossamer Condor, the first human-powered airplane developed by company founder Paul MacCready.

In all for the quarter ended Jan. 30, the company posted a profit of $6.2 million, or 27 cents a share, up from $2.3 million, or 10 cents a share, a year earlier.

Revenue fell 1.2% to $67.6 million.

Analysts surveyed by Thomson Reuters forecast per-share earnings of 5 cents on revenue of $70 million.

The use of drones has been at the center of debate over air safety, privacy and regulation of U.S. skies. Last year, the Federal Aviation Administration released provisions on small unmanned aircrafts weighing less than 55 pounds.

The provisions by the FAA require commercial drone operators to pass an approval process. Once approved, the safety requirements by the FAA limits commercial drone flights to below 500 feet, during daylight hours and within an operator's line of sight.

Write to Ezequiel Minaya at ezequiel.minaya@wsj.com

(END) Dow Jones Newswires

March 08, 2016 17:55 ET (22:55 GMT)

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