BigBear.ai (NYSE: BBAI) stock is losing ground in Wednesday's trading. The company's share price was down 8.5% as of 1 p.m. ET. Meanwhile, the S&P 500 (SNPINDEX: ^GSPC) index was up 2.2%
After the market closed yesterday, BigBear.ai published its third-quarter results. While the company's earnings came in better than anticipated, sales fell short of expectations -- and management's forward guidance did not put investors at ease.
BigBear posts smaller-than-expected loss, but sales fall short
In the third quarter, Bigbear.ai posted a loss of $0.05 per share on revenue of $41.5 million. For comparison, the average analyst estimate had called for a loss of $0.07 per share on revenue of roughly $45 million. Revenue was up 22% year over year in the quarter, but the performance still fell short of expectations. Making matters worse, comments from management suggested that next year could be challenging for the business.
What comes next for BigBear.ai?
For the full year, BigBear is guiding for revenue to be between $165 million and $180 million. The guidance includes sales contributions from the company's acquisition of Pangiam earlier this year, and the midpoint of the target range actually came in ahead of the average analyst estimate's call for sales of roughly $171.8 million in the period. But comments from management suggests that performance further out could be underwhelming.
CEO Mandy Long said that the company was continuing to see headwinds and that governments were taking a cautious approach to artificial intelligence (AI) spending. As a result, she expects that the company's business performance will be "lumpy" going forward.
So while management's sales guidance for the remainder of the year actually came in a bit ahead of expectations, they appear to have a cautious outlook for next year.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
- Amazon: if you invested $1,000 when we doubled down in 2010, you’d have $22,469!*
- Apple: if you invested $1,000 when we doubled down in 2008, you’d have $42,271!*
- Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $411,970!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of November 4, 2024
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
