Archer Aviation (NYSE:ACHR) Announces Quarterly Earnings Results

Archer Aviation (NYSE:ACHR) announced its earnings results on Monday. The company reported ($0.35) earnings per share for the quarter, missing the consensus estimate of ($0.34) by ($0.01), FiscalAI reports. The business had revenue of $5.10 million for the quarter, compared to the consensus estimate of $3.57 million. During the same period in the previous year, the business posted ($0.20) earnings per share.

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 Trading Up 8.9%

NYSE ACHR opened at $4.83 on Tuesday. The firm has a 50 day simple moving average of $4.85 and a 200-day simple moving average of $5.71. The company has a debt-to-equity ratio of 0.06, a quick ratio of 10.21 and a current ratio of 10.21. Archer Aviation has a one year low of $3.62 and a one year high of $9.29. The firm has a market cap of $3.72 billion, a price-to-earnings ratio of -4.48 and a beta of 3.59.

Key Headlines Impacting Archer Aviation

Here are the key news stories impacting Archer Aviation this week:

• Positive Sentiment: Archer said it received an FAA Market Survey Certificate that it says unlocks Los Angeles operations. This is a regulatory and operational milestone as the company works toward commercial air-taxi service. Archer Q3 results and FAA certificate announcement
• Positive Sentiment: The company said its Boeing transaction is close to completion; Boeing is expected to become Archer’s largest shareholder following the close. CEO Adam Goldstein also set a year-end target for a piloted transition flight, providing near-term milestones investors can track. Boeing transaction Piloted transition flight target
• Neutral Sentiment: Q3 revenue was $5.1 million, above the $3.6 million FactSet estimate, but the reported loss of $0.35 per share was slightly wider than the $0.34 consensus estimate. The revenue beat is encouraging, though it has not yet translated into profitability. Q3 revenue results Q3 per-share loss
• Negative Sentiment: The quarterly loss widened from the year-earlier period, and Archer continues to face substantial spending and commercialization challenges. Those costs and the time needed to bring air-taxi service to market remain risks despite recent milestones. Article on financial challenges

Analyst Ratings Changes

A number of research firms have recently issued reports on ACHR. Barclays raised shares of Archer Aviation from an “equal weight” rating to an “overweight” rating and boosted their price target for the company from $4.50 to $8.00 in a research note on Friday, October 9th. UBS Group reaffirmed an “overweight” rating on shares of Archer Aviation in a research report on Tuesday, August 11th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Archer Aviation in a report on Thursday, October 15th. Wells Fargo & Company set a $18.00 target price on shares of Archer Aviation in a report on Tuesday, August 11th. Finally, Cantor Fitzgerald cut their target price on Archer Aviation from $11.00 to $10.00 and set an “overweight” rating on the stock in a research report on Tuesday. 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. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $11.00.

Insider Activity at Archer Aviation

In related news, CAO Harsh Rungta sold 13,880 shares of the company’s stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $6.41, for a total transaction of $88,970.80. Following the sale, the chief accounting officer directly owned 110,847 shares of the company’s stock, valued at $710,529.27. This represents a 11.13% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Priya Gupta sold 10,015 shares of the company’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 sale, the chief financial officer directly owned 202,784 shares in the company, valued at approximately $1,299,845.44. The trade was a 4.71% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 176,657 shares of company stock worth $1,122,371. Corporate insiders own 5.55% of the company’s stock.

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.