Latest news with #LaunchEdition
Yahoo
5 hours ago
- Business
- Yahoo
Should You Buy, Hold, or Sell Archer Aviation Stock Ahead of Q2 Earnings?
Archer Aviation Inc. (ACHR) is slated to report second-quarter 2025 results on Aug. 11, 2025, after market close. The Zacks Consensus Estimate for earnings is pegged at a loss of 19 cents per share, suggesting an improvement from a loss of 24 cents in the prior-year quarter. The bottom-line estimate has improved over the past 60 days. Image Source: Zacks Investment Research Archer Aviation's earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, met once and missed in the other, the average negative surprise being 10.86%. Image Source: Zacks Investment Research Earnings Whispers Our proven model predicts an earnings beat for ACHR this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. Archer Aviation has a Zacks Rank #3 and an Earnings ESP of +2.70%. You can see the complete list of today's Zacks #1 Rank stocks here. Key Factors to Consider Ahead of ACHR's Q2 Earnings Release In June 2025, Archer Aviation announced a strategic partnership with Jetex, a global aviation services provider, to develop infrastructure across Jetex's 40 private terminals in over 30 countries, starting with the UAE. The collaboration builds on Archer's existing infrastructure partnerships, aiming to expand a global vertiport network to support its planned commercial air taxi operations and future international growth. In June, Archer Aviation also signed an agreement with PT. IKN to deploy an initial fleet of Midnight aircraft in Indonesia, making it the third country where it plans to deploy Midnight under its 'Launch Edition' program. Such strategic agreements might have contributed favorably to ACHR's second-quarter performance. With the company continuing to invest in its engineering, manufacturing and commercial activities for the Midnight aircraft, it is likely to have incurred notable expenses for the program's development. This, along with an increase in labor and materials spent due to its planned ramp of manufacturing activity for the Midnight aircraft, is likely to have increased Archer Aviation's operating expenses, thereby weighing on its quarterly earnings performance. However, ACHR's technological advancement over the past few quarters while developing the Midnight jet is likely to have provided it with operational efficiency, aiding its quarterly bottom line. The company's quarterly results are also likely to reflect a strong cash balance account, particularly driven by the proceeds from its equity raise worth $850 million, following the White House's announcement of an Executive Order by President Trump to implement an eVTOL Integration Pilot Program in the United States in June. This, in turn, must have brought its total liquidity position to approximately $2 billion, which should be duly reflected in its second-quarter balance sheet on Aug. 11. Price Performance & Valuation ACHR's shares recently exhibited a downward trend, having lost a notable percentage in the past six months. Specifically, the stock fell 3.9% in the said period, underperforming the Zacks aerospace-defense industry's gain of 19.7%. It also lagged the broader Zacks Aerospace sector's return of 19.9% as well as the S&P 500's rise of 4.4%. Image Source: Zacks Investment Research Other notable stocks from the same industry have, however, gained in the past six months. Shares of Embraer (ERJ) and Boeing (BA) have rallied 37.8% and 25.9%, respectively, over the past year. In terms of valuation, ACHR's trailing price/book (P/B) ratio of 5.32 represents a discount to the industry average of 6.22. Image Source: Zacks Investment Research Investment Thesis ACHR offers promising near-term prospects, but whether its business will be sustainable in the long run remains uncertain. This is because the eVTOL aircraft market is still in its early stages, and ACHR's success depends not only on its ability to design, develop and certify eVTOL aircraft but also on how the demand for these vehicles evolves. Public acceptance of eVTOLs as an alternative to traditional transport methods could face hurdles related to safety, noise and affordability concerns. Without widespread recognition, ACHR's growth potential may be constrained. Additionally, ACHR and other aerospace manufacturers like BA and ERJ are navigating industry challenges, including persistent supply-chain disruptions and a shortage of skilled labor. Such factors could hinder ACHR's ability to complete its projects on time. Moreover, a quick glance at the company's return on equity (ROE) over the past year compared to that of its industry reveals a dismal scenario. ACHR's negative ROE indicates that it is incurring a loss, as evident from its recent quarterly results. Image Source: Zacks Investment Research Should You Buy ACHR Before Aug. 11? To conclude, ACHR is less likely to disappoint with its second-quarter results, considering its favorable Zacks Rank, positive Earnings ESP as well as improvement in its bottom-line estimate over the past 60 days. However, investors interested in this stock may consider staying on the sidelines before Monday, taking into account its poor ROE, dismal performance at the bourses as well as industry challenges. 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 The Boeing Company (BA) : Free Stock Analysis Report Embraer-Empresa Brasileira de Aeronautica (ERJ) : Free Stock Analysis Report Archer Aviation Inc. (ACHR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 hours ago
- Business
- Yahoo
Archer Q2 2025 Preview: Midnight's Milestone and Cash Burn in Focus
Archer Aviation (NYSE:ACHR) reports Q2 2025 results after the market closes on August 11, 2025. Wall Street estimates a loss of $0.25 per share on revenue of $200,000, with management guiding for an adjusted EBITDA loss between $100 to $120 million. The stock is down 3% year to date but remains up more than 140% over the past 12 months, as investors wait for updates on the commercialization of these aircraft. Since Q1, Archer has reaffirmed plans to deliver its first Midnight eVTOL aircraft to the UAE this summer and has added Ethiopian Airlines to its Launch Edition customer base. Management commentary on these initiatives, particularly progress on the defense aircraft being co-developed with Anduril, will be important. However, the principal factor for investors will be the update on the Midnight aircraft's certification and production. Progress with the Federal Aviation Administration is a fundamental driver of future revenue, and any delay there could significantly impact the stock. Investors will be listening for details on flight test results and the timeline for the final stages of certification. With significant capital requirements ahead, Archer's cash position and burn rate will also be under the spotlight. The company ended Q1 with over $1 billion in cash and recently raised $850 million in equity, but investors will want to see that the company is managing its expenses effectively and has a clear plan for reaching commercial scale without excessive dilution. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
a day ago
- Business
- Business Wire
Archer Announces Second Quarter Results, Highlighting Manufacturing Ramp Of Midnight Aircraft Ahead Of Early Commercial Deployments
SANTA CLARA, Calif.--(BUSINESS WIRE)--Archer Aviation Inc. ('Archer' or the 'Company') (NYSE: ACHR) today announced operating and financial results for the second quarter ended June 30, 2025. The Company issued a shareholder letter discussing those results, as well as its third quarter 2025 estimates. Commenting on second quarter 2025 results, Adam Goldstein, Archer's founder and CEO said: 'This quarter, we ramped aircraft manufacturing across our facilities in California and Georgia with six Midnight aircraft in production, including three in final assembly. Alongside major progress in the UAE, our selection as the Official Air Taxi Provider of LA28 Olympic Games, and two acquisitions to accelerate our defense program, we're executing from a position of strength with a sector leading $1.7 billion of liquidity.' Live Webcast Details Archer will host a live webcast to discuss its results at 2:00 p.m. Pacific Time today. The live webcast and replay is accessible via Archer's investor relations website at or conference call by dialing 404-975-4839 (domestic) or +1 833-470-1428 (international) and entering the access code 100811. Second Quarter Highlights Aircraft Manufacturing Ramps, With Production Certificate Well Underway Archer is concurrently producing six Midnight aircraft across its supply chain, three of which are in final assembly across its facilities. Archer is building these across its 'golden manufacturing line' in Silicon Valley and its high-volume facility in Georgia. In parallel, the FAA continued conducting reviews and inspections of Archer's manufacturing operations as part of the production certificate efforts. LA 2028 Olympic Games And White House Executive Order Advance U.S. Launch Plans The LA 2028 Olympic Games selected Archer as its Official Air Taxi Provider, helping align Archer's federal and local stakeholders around achieving the goal of FAA type certification and scaled operations of Midnight. To enable this, Archer partnered with the U.S. Department of Transportation, the FAA and the White House on an Executive Order in June 2025 to promote American 'dominance' in eVTOL aircraft and create a Presidential mandate for early U.S. deployments as soon as next year. UAE Launch Edition Takes Flight Archer signed definitive agreements with its partners, Abu Dhabi Aviation and the Abu Dhabi Investment Office, to activate the first of several planned Launch Edition programs globally. As part of this, Archer delivered its first Midnight aircraft to the UAE, commenced its flight test program in Abu Dhabi and expects initial commercial payments later this year. Accelerated Defense Program With Two Strategic Acquisitions Archer Defense is seeing strong demand from four of the major allied defense programs worldwide. In an effort to accelerate its path to market, during the quarter Archer made two strategic acquisitions: a patent portfolio and critical talent from Overair, and specialized defense composite manufacturing assets from Mission Critical Composites in Southern California. Second Quarter Financial Results A reconciliation of non-GAAP financial measures to the most comparable GAAP measures is provided below in the section titled 'Reconciliation of Selected GAAP To Non-GAAP Results for Q2 2025.' Expand Third Quarter 2025 Financial Estimates Archer's financial estimates for third quarter of 2025 are as follows: Adjusted EBITDA to be a loss of $110 million to $130 million We have not reconciled our Adjusted EBITDA estimates because certain items that impact non-GAAP metrics are uncertain or out of our control and cannot be reasonably predicted. In particular, stock-based compensation expense and change in fair value of warrants is impacted by the future fair market value of our common stock and warrants along with other factors, all of which are difficult to predict, subject to frequent change, or not within our control. The actual amount of these expenses during 2025 will have a significant impact on our future GAAP financial results. Accordingly, a reconciliation of non-GAAP metrics is not available without unreasonable effort. About Archer Archer is designing and developing the key enabling technologies and aircraft necessary to power the future of aviation. To learn more, visit Source: Archer Text: ArcherIR Forward-Looking Statements This press release contains forward-looking statements regarding Archer's future business plans and expectations, including statements regarding its expected financial results for the third quarter of 2025, business strategy and plans, aircraft performance, the design and target specifications of our aircraft, the pace at which Archer intends to design, develop, certify, conduct test flights, manufacture and commercialize its planned eVTOL aircraft, business opportunities, production timeline, ramp-up and volume of its manufacturing facilities, air taxi network buildout, plans and anticipated benefits with respect to its collaborations with between Archer and third parties, government incentives, projected demand for Archer's aircraft and services, including its 'Launch Edition' commercialization program and associated deployment of aircraft and timing of commercial payments, Archer Defense, and international expansion. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors. The risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed in our filings with the Securities and Exchange Commission ('SEC'), including our most recent Annual Report on Form 10-K and in our Current Report on Form 8-K, filed with the SEC on June 13, 2025, which is or will be available on our investor relations website at and on the SEC website at In addition, please note that any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of the date of this press release. We undertake no obligation to update these statements as a result of new information or future events. Reconciliation of Selected GAAP To Non-GAAP Results for Q2 2025 Reconciliation of Total Operating Expenses (in millions; unaudited): A reconciliation of total operating expenses to non-GAAP total operating expenses for the three months ended June 30, 2025 is set forth below. (1) Amounts include non-cash warrant costs, classified as research and development expenses, for the warrants issued to Stellantis N.V. and its subsidiaries ('Stellantis') in connection with certain services they are providing to the Company. (2) Amounts include stock-based compensation for options, restricted stock units and shares issued to employees, non-employees and vendors. Expand Reconciliation of Adjusted EBITDA (in millions; unaudited): A reconciliation of net loss to Adjusted EBITDA for the three months ended June 30, 2025 is set forth below. (1) Amounts include changes in fair value of the public and private warrants, which are classified as warrant liabilities. (2) Amounts include non-cash warrant costs, classified as research and development expenses, for the warrants issued to Stellantis in connection with certain services they are providing to the Company. (3) Amounts include stock-based compensation for options, restricted stock units and shares issued to employees, non-employees and vendors. Expand Non-GAAP Financial Measures To supplement our condensed consolidated financial results prepared in accordance with GAAP, we use the following non-GAAP financial measures: Non-GAAP total operating expenses and Adjusted EBITDA. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In particular, these non-GAAP financial measures have no standardized meaning prescribed by GAAP and are not based on a comprehensive set of accounting rules or principles and many of the adjustments to the GAAP financial measures reflect the exclusion of items that are recurring and may be reflected in our financial results for the foreseeable future. In addition, these measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures. We believe that the use of non-GAAP financial measures help us evaluate our business and financial performance, identify trends impacting our business, formulate business plans and financial projections, and make strategic decisions. We believe that disclosing non-GAAP financial measures to the readers of our financial statements provides useful supplemental data that, while not a substitute for GAAP financial measures, can offer insight in the review of our operating and financial results and enables investors to more fully understand our performance and cash trends by removing the effects of certain non-cash expenses and non-recurring items. We excluded items in the following general categories from one or more of our non-GAAP financial measures, certain of which are described below: Stock-Based Compensation Expense: We exclude stock-based compensation, which is a non-cash expense, from these non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information on our operating results and enhances our ability and the ability of the investors to understand the impact of non-cash stock-based compensation on our operating results. Warrant Expense and Gains or Losses from Revaluation of Warrants: Expense from our common stock warrants issued to Stellantis, which is recurring (but non-cash) and gains or losses from change in fair value of public and private warrants from revaluation will be reflected in our financial results for the foreseeable future. We exclude warrant expense and gains or losses from change in fair value for similar reasons to our stock-based compensation expense.
Business Insider
2 days ago
- Business
- Business Insider
Archer Aviation (ACHR) Is About to Report Q2 Earnings Tomorrow. Here Is What to Expect
Archer Aviation (NASDAQ:ACHR), which develops electric vertical takeoff and landing (eVTOL) aircraft, will report its Q2 2025 earnings tomorrow, August 11, after the market closes. The stock has soared 173% over the past year, driven by global partnerships and growing excitement around electric air taxis. However, Archer remains a pre-revenue, pre-commercial company, which means the stock still carries significant risk. Wall Street analysts expect ACHR to report a loss per share of $0.25 for Q2 compared to a loss of $0.32 in the same quarter last year. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Meanwhile, analysts project Q2 revenues of $200.00K, according to the TipRanks Analyst Forecasts Page. Investors will watch how much money Archer is spending, how far it is from getting flight approval, and whether there are any updates on when commercial aircraft deliveries will begin. On July 2, Archer Aviation announced the successful completion of its first test flight of the Midnight eVTOL aircraft at Al Bateen Executive Airport in Abu Dhabi. The flight was attended by senior officials from the UAE's General Civil Aviation Authority and the Abu Dhabi Investment Office. The event marked a key milestone in Archer's Launch Edition partnership with Abu Dhabi Aviation. Following the announcement, analysts at Canaccord Genuity and Cantor Fitzgerald reiterated their Buy ratings on the stock, each assigning a $13 price target. Both firms praised the company's recent progress and pointed to Archer's growing work in the UAE and its steps toward FAA approval and starting air taxi services. JPMorgan Remains Cautious Ahead of Q2 Just ahead of the Q2 print, JPMorgan analyst Bill Peterson raised his price target on Archer Aviation from $9 to $10 but maintained a Neutral rating. The firm acknowledged recent momentum in the eVTOL sector but called it 'irrational exuberance.' While the Trump administration's latest executive order signals long-term government support for the category, Peterson does not expect it to change the company's earnings outlook in the near term. The firm highlighted continued cash burn and potential delays in revenue generation as key risks. Options Traders Anticipate a Large Move Using TipRanks' Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don't worry; the Options tool does this for you. Indeed, it currently says that options traders are expecting a 13.37% move in either direction. Is Archer Aviation Stock a Good Buy? Overall, Wall Street has a Moderate Buy consensus rating on ACHR stock, based on four Buys and two Holds assigned in the last three months. The average ACHR price target of $11.92 implies about 21.63% upside potential from current levels.
Business Insider
3 days ago
- Business
- Business Insider
Archer Aviation (ACHR) Is About to Report Q2 Earnings on Monday. Here Is What to Expect
Archer Aviation (NASDAQ:ACHR), which develops electric vertical takeoff and landing (eVTOL) aircraft, will report its Q2 2025 earnings on Monday, August 11, after the market closes. The stock has soared 146% over the past year, driven by global partnerships and growing excitement around electric air taxis. However, Archer remains a pre-revenue, pre-commercial company, which means the stock still carries significant risk. Wall Street analysts expect ACHR to report a loss per share of $0.25 for Q2 compared to a loss of $0.32 in the same quarter last year. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Meanwhile, analysts project Q2 revenues of $200.00K, according to the TipRanks Analyst Forecasts Page. Investors will watch how much money Archer is spending, how far it is from getting flight approval, and whether there are any updates on when commercial aircraft deliveries will begin. On July 2, Archer Aviation announced the successful completion of its first test flight of the Midnight eVTOL aircraft at Al Bateen Executive Airport in Abu Dhabi. The flight was attended by senior officials from the UAE's General Civil Aviation Authority and the Abu Dhabi Investment Office. The event marked a key milestone in Archer's Launch Edition partnership with Abu Dhabi Aviation. Following the announcement, analysts at Canaccord Genuity and Cantor Fitzgerald reiterated their Buy ratings on the stock, each assigning a $13 price target. Both firms praised the company's recent progress and pointed to Archer's growing work in the UAE and its steps toward FAA approval and starting air taxi services. JPMorgan Remains Cautious Ahead of Q2 Just ahead of the Q2 print, JPMorgan analyst Bill Peterson raised his price target on Archer Aviation from $9 to $10 but maintained a Neutral rating. The firm acknowledged recent momentum in the eVTOL sector but called it 'irrational exuberance.' While the Trump administration's latest executive order signals long-term government support for the category, Peterson does not expect it to change the company's earnings outlook in the near term. The firm highlighted continued cash burn and potential delays in revenue generation as key risks. Options Traders Anticipate a Large Move Using TipRanks' Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don't worry; the Options tool does this for you. Indeed, it currently says that options traders are expecting a 13.37% move in either direction. Is Archer Aviation Stock a Good Buy? Overall, Wall Street has a Moderate Buy consensus rating on ACHR stock, based on four Buys and two Holds assigned in the last three months. The average ACHR price target of $11.92 implies about 21.63% upside potential from current levels.
