Archer Aviation Inc. ACHR is slated to report third-quarter 2024 results on Nov. 7, after market close. The company delivered an earnings surprise of 14.29% in the last reported quarter.
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The company delivered an average earnings surprise of 7.73% in the trailing four quarters.
Let’s discuss the factors that are likely to affect the upcoming quarterly results.
Factors to Note Ahead of ACHR’s Results
In August 2024, Archer Aviation signed an agreement with Future Flight Global (“FFG”) to deliver up to 116 Midnight electric vertical take-off and landing (eVTOL) aircraft, valued at approximately $580 million. This agreement boosted the company’s order book to $6 billion, which is likely to reflect in its third-quarter results.
Archer Aviation Inc. Price and EPS Surprise
Archer Aviation Inc. price-eps-surprise | Archer Aviation Inc. Quote
In the same month, Archer Aviation delivered its first Midnight aircraft to the U.S. Air Force as part of the AFWERX Agility Prime contract, valued at up to $142 million. This is likely to have contributed favorably to ACHR’s third-quarter revenues.
On the financial front, ACHR bolstered its liquidity by securing $220 million worth of capital raised since the end of the second quarter of 2024. This funding, combined with the $360 million of cash on hand the company had at the end of the second-quarter, is likely to have bolstered its cash balance, which is expected to have reflected in its third-quarter balance sheet.
With the company progressing efficiently toward its target to commercialize the Midnight aircraft in 2025, it is likely to have incurred notable engineering development expenses for the program’s development. This, in turn, is likely to have increased Archer Aviation’s operating expenses, thereby weighing on its quarterly earnings performance.
However, the technological advancement that ACHR has achieved over the past few quarters while developing the Midnight jet is likely to have provided it with operational efficiency, thereby aiding its quarterly bottom line.
Q3 Expectations for ACHR
The Zacks Consensus Estimate for Archer Aviation’s third-quarter earnings is pegged at a loss of 24 cents per share, which indicates an improvement from the year-ago quarter’s loss of 29 cents per share.
The Zacks Consensus Estimate for sales is pegged at $1.1 million.
What the Zacks Model Unveils for ACHR
Our proven model does not conclusively predict an earnings beat for ACHR this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below.
Earnings ESP: ACHR has an Earnings ESP of -2.13%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Archer Aviation currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Investors can consider the following players from the same sector, which have the right combination of elements to post an earnings beat in their quarterly results.
Heico Corporation HEI is scheduled to report its fourth-quarter fiscal 2024 results soon. It has an Earnings ESP of +1.32% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for sales is pegged at $1.05 billion, which indicates a 11.8% improvement from the year-ago quarter’s figure. The consensus estimate for earnings is pinned at 99 cents per share, which indicates year-over-year growth of 17.9%.
Triumph Group TGI is slated to release its third-quarter results on Nov. 12. It has an Earnings ESP of +9.09% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for sales is pegged at $287.3 million. The consensus estimate for earnings is pegged at 6 cents per share, which indicates year-over-year growth of 500%.
A Recent Defense Release
Hexcel Corporation HXL reported third-quarter adjusted earnings of 47 cents per share, which improved 23.7% from the year-ago quarter’s figure of 38 cents. The bottom line also surpassed the Zacks Consensus Estimate by 2.2%.
Net sales totaled $456.5 million, which beat the consensus estimate of $456.2 million by 0.1%. The top line also witnessed an improvement of 8.8% from the year-ago quarter’s figure of $419.5 million.
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