AeroVironment, Inc. AVAV reported third-quarter fiscal 2019 earnings per share (EPS) from continuing operations of 35 cents, beating the Zacks Consensus Estimate of 14 cents by 150%. Earnings also improved by 37 cents from the year-ago quarter’s net loss per share of 2 cents.Operational PerformanceRevenues of $75.3 million increased 38% on a year-over-year basis, driven by 26.8% improvement in product revenues to $50 million and improvement in service revenues of 66.6% to $25.3 million.As of Jan 27, 2019, the company’s funded backlog was $132.5 million, up 17% year over year.Gross margin for the third quarter of fiscal 2019 was 40%, up 700 basis points year over year.Total operating expenses increased 24.7% to $22.55 million, thanks to 27.6% rise in selling, general and administrative expenses and 22.4% in research and development expenses.Consequently, operating income for the first nine months of fiscal 2019 was $7.8 million, an increase from $0.2 million reported in the same period last year. AeroVironment, Inc. Price, Consensus and EPS Surprise AeroVironment, Inc. Price, Consensus and EPS Surprise | AeroVironment, Inc. QuoteFinancial UpdateAeroVironment ended the reported quarter with cash and cash equivalents of $149.4 million, up from $143.5 million as of Apr 30, 2018.Operating cash flow totaled $6.9 million at end of Jan 27, 2019, significantly down from $31.8 million at the end of Jan 27, 2018.2019 Guidance For fiscal 2019, the company expects to generate revenues from continuing operations of $300-$310 million.The company raised full-year expectations for diluted earnings per share from continuing operations to $1.60-$1.80, including a one-time gain of $0.26 from a litigation settlement. The prior range stood at $1.30-$1.50 per share.The company also continues to advance its growth portfolio, including exercising the one-time option to increase ownership of the HAPSMobile, Inc. joint venture from 5% to 10%.Zacks RankAeroVironment currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Other Defense ReleasesFLIR Systems Inc.’s FLIR fourth-quarter 2018 adjusted earnings of 62 cents per share surpassed the Zacks Consensus Estimate of 60 cents by 3.3%. The company carries a Zacks Rank #3 (Hold).Textron TXT reported fourth-quarter 2018 adjusted earnings from continuing operations of $1.15 per share, which exceeded the Zacks Consensus Estimate of 98 cents by 17.3%. The company has a Zacks Rank #3.Hexcel Corporation’s HXL fourth-quarter 2018 adjusted earnings of 82 cents per share outpaced the Zacks Consensus Estimate of 80 cents by 2.5%. The company carries a Zacks Rank #2 (Buy).Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hexcel Corporation (HXL): Free Stock Analysis Report AeroVironment, Inc. (AVAV): Free Stock Analysis Report Textron Inc. (TXT): Free Stock Analysis Report FLIR Systems, Inc. (FLIR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research