Strong earnings by defense contractors coupled with a well-received rollout of new products lifted shares of AeroVironment Inc. last week.

The Monrovia maker of small aircraft used primarily in military reconnaissance missions can also count itself among a number of military contractors that emerged from the recent federal budget battles relatively unscathed. Shares closed up 55 cents to $26.44 on Oct. 24; they were up 20 percent since Oct. 9.

Despite the tumult in Washington that included a temporary partial shutdown of the government, federal payments are still burnishing the defense industry’s top-line growth.

“All the big defense firms have beat expectations, which sets the stage for smaller companies like AeroVironment,” said Bill Loomis, a defense industry analyst with Stifel Nicolaus & Co. in New York. “It sets investors’ mind-sets that even with the battles, the Department of Defense is cutting slowly.”

The product upgrades AeroVironment laid out at a recent industry trade show included battery improvements to its Puma aerial system that are designed to keep the light unmanned aircrafts aloft longer. Company executives also announced last week that they had entered into an exploratory partnership with Eurocopter, a European group that manufactures civilian and military helicopters.

Although the two have yet to announce anything concrete, analysts were optimistic about AeroVironment’s linking with one of the industry’s largest manufacturers.

“Eurocopter is a market share leader in terms of helicopters and obviously AeroVironment is a leader in small unmanned systems,” said Peter Arment, an analyst with Sterne Agee & Leech in Washington. “It’s a new opportunity and we’ll see how it plays out.”

While the company has been able to withstand the political infighting in Washington, the potential for further budget cuts looms.

The latest budget deal expires in January, just as the next round of sequestration cuts are set to kick in. Many defense contractors, already wary of tightened government spending, are concerned that deeper cuts could take a toll.

For now, though, Loomis said investors are relying on a bulwark of optimism that a larger deal will be worked out.

“I think people are hoping Congress will come to a deal to weaken or loosen sequestration,” Loomis said. “If that doesn’t happen then the Department of Defense will be forced to cut back on the big weapon programs and that’s worrisome.”