Raven (RAVN) Q4 Earnings Report Review

Raven Industries Inc. (NASDAQ:RAVN) was founded in 1956 in Sioux Falls, South Dakota. The company started operating as a manufacturer of research balloons that could fly at high altitudes. The goal was to help the U.S. space program in overcoming the challenges it was facing in space exploration back then. Over the years, Raven gradually evolved into a diversified technology company. It currently provides technology products and services to a range of industries such as agriculture, energy, aerospace, and defense.

The company recently announced its financial results for the fourth quarter that missed expectations. Raven reported earnings of $0.3 million, or 1 cent per share for the three months ended January 31, significantly down from $3.3 million, or 9 cents per share in the comparable period of 2020. Analysts on average were expecting Raven to post earnings of 13 cents per share.

Revenue for the quarter came in at $80.1 million, translating to a decline of 6.6 percent from the year-ago quarter, and below the consensus forecast of $91.8 million. If we look at the performance of key segments, revenue at the Engineered Films segment fell 12.7 percent to $34.5 million, while revenue at Aerostar business declined 20 percent to $10.7 million. On the bright side, revenue at Applied Technology jumped 6 percent to $34.9 million.

Speaking on the growth prospects of Raven, CEO Dan Rykhus said in a statement, “Fiscal 2022 will be an exciting year for our company as we build out each of our strategic platforms for growth while leveraging the strength of our underlying businesses. Substantial order activity and improving market fundamentals provide confidence in our ability to drive strong year-over-year growth in Applied Technology and Engineered Films.”

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