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What's in Store for Archer Aviation (ACHR) in Q1 Earnings?
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Archer Aviation Inc. (ACHR - Free Report) is slated to report first-quarter 2024 results on May 9 after the closing bell.
In the last reported quarter, the company incurred a loss of 29 cents per share, which came in wider than the Zacks Consensus Estimate for a loss of 27 cents per share.
Factors to Note
In January 2024, Archer Aviation’s Midnight electric vertical takeoff and landing (eVTOL) aircraft achieved a significant milestone with the Phase 1 completion of its flight test program. Additionally, Midnight’s battery system was upgraded to include some of the first high-voltage battery packs of Archer’s manufacturing line at its San Jose, CA facilities.
Moreover, in February, the company received its Part 145 Repair Station Certificate, which allows ACHR to perform specialized aircraft maintenance, repair and overhaul services on its Midnight aircraft once it is certified for commercial operations. These developments put ACHR a step ahead in making this jet production-ready. Once ACHR releases its quarterly results, we shall get more updates on Midnight’s progress.
With the company progressing efficiently toward its target to commercialize the Midnight aircraft in 2025, notable engineering development expenses to build and test the aircraft continue to be incurred. This, in turn, is likely to have increased ACHR’s operating expenses, thereby weighing on its quarterly earnings performance.
However, the technological advancement that ACHR has achieved over the past few years while developing the Midnight jet is likely to have provided it with operational efficiency, thereby aiding its quarterly bottom line.
ACHR’s cash flows from operating activities have been affected in recent times by its cash investments to support the growth of its research and development activities related to its eVTOL aircraft, as well as the general and administrative functions necessary to support such activities. As the company has not yet delivered any of its eVTOL jets, we expect its first-quarter results to reflect a similar trend for its cash flow figure.
Q1 Expectations
The Zacks Consensus Estimate for Archer Aviation’s first-quarter earnings is pegged at a loss of 29 cents per share, indicating an improvement from the year-ago quarter’s reported loss of 36 cents per share.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Archer Aviation 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 not the case here.
Earnings ESP: ACHR’s Earnings ESP is 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Below are two defense stocks that have the right combination of elements to post an earnings beat this reporting cycle.
CAE Inc. (CAE - Free Report) is scheduled to release fourth-quarter fiscal 2024 results soon. CAE has an Earnings ESP of +1.07% and a Zacks Rank of 3 at present.
CAE delivered a four-quarter average earnings surprise of 13.33%. The Zacks Consensus Estimate for CAE’s earnings is pegged at 31 cents per share. The consensus estimate for sales is pinned at $957.3 million.
Heico (HEI - Free Report) is scheduled to release second-quarter fiscal 2024 results soon. HEI has an Earnings ESP of +0.95% and a Zacks Rank of 2 at present.
HEI delivered a four-quarter average earnings surprise of 10.49%. The Zacks Consensus Estimate for HEI’s earnings is pegged at 79 cents per share. The consensus estimate for sales is pinned at $941.2 million.
A Recent Defense Release
General Dynamics Corporation (GD - Free Report) reported first-quarter 2024 earnings per share of $2.88, which missed the Zacks Consensus Estimate of $2.89 by 0.4%. However, the figure increased 9.1% from $2.64 in the year-ago quarter.
GD’s revenues of $10,731 million beat the consensus estimate of $10,201 million by 5.2%. The top line also improved 8.6% from the prior-year reported figure.
Image: Bigstock
What's in Store for Archer Aviation (ACHR) in Q1 Earnings?
Archer Aviation Inc. (ACHR - Free Report) is slated to report first-quarter 2024 results on May 9 after the closing bell.
In the last reported quarter, the company incurred a loss of 29 cents per share, which came in wider than the Zacks Consensus Estimate for a loss of 27 cents per share.
Factors to Note
In January 2024, Archer Aviation’s Midnight electric vertical takeoff and landing (eVTOL) aircraft achieved a significant milestone with the Phase 1 completion of its flight test program. Additionally, Midnight’s battery system was upgraded to include some of the first high-voltage battery packs of Archer’s manufacturing line at its San Jose, CA facilities.
Archer Aviation Inc. Price and EPS Surprise
Archer Aviation Inc. price-eps-surprise | Archer Aviation Inc. Quote
Moreover, in February, the company received its Part 145 Repair Station Certificate, which allows ACHR to perform specialized aircraft maintenance, repair and overhaul services on its Midnight aircraft once it is certified for commercial operations. These developments put ACHR a step ahead in making this jet production-ready. Once ACHR releases its quarterly results, we shall get more updates on Midnight’s progress.
With the company progressing efficiently toward its target to commercialize the Midnight aircraft in 2025, notable engineering development expenses to build and test the aircraft continue to be incurred. This, in turn, is likely to have increased ACHR’s operating expenses, thereby weighing on its quarterly earnings performance.
However, the technological advancement that ACHR has achieved over the past few years while developing the Midnight jet is likely to have provided it with operational efficiency, thereby aiding its quarterly bottom line.
ACHR’s cash flows from operating activities have been affected in recent times by its cash investments to support the growth of its research and development activities related to its eVTOL aircraft, as well as the general and administrative functions necessary to support such activities. As the company has not yet delivered any of its eVTOL jets, we expect its first-quarter results to reflect a similar trend for its cash flow figure.
Q1 Expectations
The Zacks Consensus Estimate for Archer Aviation’s first-quarter earnings is pegged at a loss of 29 cents per share, indicating an improvement from the year-ago quarter’s reported loss of 36 cents per share.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Archer Aviation 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 not the case here.
Earnings ESP: ACHR’s Earnings ESP is 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: ACHR currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Below are two defense stocks that have the right combination of elements to post an earnings beat this reporting cycle.
CAE Inc. (CAE - Free Report) is scheduled to release fourth-quarter fiscal 2024 results soon. CAE has an Earnings ESP of +1.07% and a Zacks Rank of 3 at present.
CAE delivered a four-quarter average earnings surprise of 13.33%. The Zacks Consensus Estimate for CAE’s earnings is pegged at 31 cents per share. The consensus estimate for sales is pinned at $957.3 million.
Heico (HEI - Free Report) is scheduled to release second-quarter fiscal 2024 results soon. HEI has an Earnings ESP of +0.95% and a Zacks Rank of 2 at present.
HEI delivered a four-quarter average earnings surprise of 10.49%. The Zacks Consensus Estimate for HEI’s earnings is pegged at 79 cents per share. The consensus estimate for sales is pinned at $941.2 million.
A Recent Defense Release
General Dynamics Corporation (GD - Free Report) reported first-quarter 2024 earnings per share of $2.88, which missed the Zacks Consensus Estimate of $2.89 by 0.4%. However, the figure increased 9.1% from $2.64 in the year-ago quarter.
GD’s revenues of $10,731 million beat the consensus estimate of $10,201 million by 5.2%. The top line also improved 8.6% from the prior-year reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.