Archer Aviation (NYSE:ACHR) Announces Quarterly Earnings Results

Archer Aviation (NYSE:ACHR) issued its earnings results on Monday. The company reported ($0.35) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.34) by ($0.01), FiscalAI reports. The business had revenue of $5.10 million during the quarter, compared to analyst estimates of $3.57 million.

Here are the key takeaways from Archer Aviation’s conference call:

• The FAA granted Midnight a Market Survey Special Airworthiness Certificate, allowing Archer to begin flights in Los Angeles and advance toward passenger-carrying operations. The authorization covers the aircraft’s current CTOL configuration; Archer says it plans to pursue the same process for VTOL operations.
• Archer reported progress in the final phase of FAA type certification and said piloted transition flights are on track to reach a milestone by year-end. Management cited more than 260 piloted test flights, while acknowledging certification remains a rigorous process.
• Third-quarter revenue was $5.1 million, driven in part by initial engine deliveries for Anduril’s Omen program, and the adjusted EBITDA loss of $178.5 million was within guidance. Archer ended the quarter with $1.4 billion in liquidity.
• Archer expects its pending acquisition of Wisk, SkyGrid, and Insitu from Boeing to close soon, with one approval still outstanding. Management said Insitu has historically generated more than $200 million in annual revenue and positive operating cash flow, though post-close growth and integration plans remain to be detailed.
• For the fourth quarter, Archer forecast standalone revenue of $5 million to $6 million and an adjusted EBITDA loss of $185 million to $205 million. The projected loss range is higher than the third-quarter loss as the company continues investing in certification, flight testing, and development programs.

Archer Aviation Stock Up 8.9%

Archer Aviation stock traded up $0.40 during trading hours on Monday, reaching $4.83. The stock had a trading volume of 39,107,379 shares, compared to its average volume of 34,597,531. The company has a market cap of $3.72 billion, a price-to-earnings ratio of -4.48 and a beta of 3.59. The company has a debt-to-equity ratio of 0.06, a current ratio of 10.21 and a quick ratio of 10.21. The business’s 50 day moving average price is $4.87 and its 200-day moving average price is $5.73. Archer Aviation has a 52 week low of $3.62 and a 52 week high of $9.29.

Insider Activity

In other news, insider Eric Lentell sold 100,000 shares of Archer Aviation stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $6.31, for a total value of $631,000.00. Following the transaction, the insider owned 85,011 shares of the company’s stock, valued at $536,419.41. The trade was a 54.05% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Priya Gupta sold 10,015 shares of the business’s stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $6.41, for a total transaction of $64,196.15. Following the transaction, the chief financial officer owned 202,784 shares of the company’s stock, valued at approximately $1,299,845.44. This trade represents a 4.71% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 176,657 shares of company stock worth $1,122,371. Corporate insiders own 5.55% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on ACHR. Needham & Company LLC reissued a “buy” rating and set a $9.00 price target on shares of Archer Aviation in a research report on Tuesday, August 11th. Wells Fargo & Company set a $18.00 price objective on shares of Archer Aviation in a research note on Tuesday, August 11th. HC Wainwright reiterated a “buy” rating on shares of Archer Aviation in a report on Tuesday, August 11th. Barclays raised shares of Archer Aviation from an “equal weight” rating to an “overweight” rating and raised their target price for the company from $4.50 to $8.00 in a research report on Friday, October 9th. Finally, UBS Group restated an “overweight” rating on shares of Archer Aviation in a report on Tuesday, August 11th. Six investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $11.50.

About Archer Aviation

Archer Aviation is an aerospace company based in San Jose, California, that develops electric vertical takeoff and landing (eVTOL) aircraft and related services. Its aircraft are designed for short passenger trips, including potential air taxi routes between urban areas and nearby airports.

The company’s primary aircraft is Midnight, a piloted eVTOL designed to carry four passengers and a pilot. Archer is working to bring the aircraft to commercial service, subject to regulatory approvals, and is pursuing operations in the United States and international markets.

Founded in 2018, Archer was co-founded by Adam Goldstein, who serves as its chief executive officer, and Brett Adcock.