Archer Aviation (NYSE:ACHR) Issues Earnings Results, Hits Estimates

Archer Aviation (NYSE:ACHR) released its quarterly earnings data on Monday. The company reported ($0.34) EPS for the quarter, hitting analysts’ consensus estimates of ($0.34), FiscalAI reports. The firm had revenue of $5.00 million during the quarter, compared to analyst estimates of $1.94 million.

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

• Archer plans to acquire Boeing-owned Wisk Aero, Insitu, and SkyGrid in an all-stock transaction targeted to close by year-end, while Boeing takes a strategic equity stake and commits to future collaboration and investments.
• Insitu would add an established defense business generating more than $200 million in annual revenue, with management expecting positive free cash flow after closing and substantial growth opportunities in ISR drones.
• Archer reported Q2 revenue of $5 million, up 213% sequentially, while maintaining $1.6 billion in liquidity; its $177 million adjusted EBITDA loss was at the favorable end of guidance.
• Midnight flight testing is advancing, with more than 150 piloted test flights, intercity flights, and FAA approval of Archer’s quality management system. The company expects Los Angeles testing and initial eIPP operations in Texas later this year.
• Archer remains heavily loss-making, forecasting another $170 million–$200 million adjusted EBITDA loss in Q3. Management expects cash burn to remain relatively flat after the acquisitions, but integration, transaction-closing, and execution risks remain significant.

Archer Aviation Stock Performance

NYSE ACHR opened at $6.30 on Tuesday. Archer Aviation has a twelve month low of $4.30 and a twelve month high of $14.62. The company has a quick ratio of 18.06, a current ratio of 18.06 and a debt-to-equity ratio of 0.06. The stock has a market cap of $4.79 billion, a P/E ratio of -5.73 and a beta of 3.20. The company’s 50-day simple moving average is $5.17 and its 200 day simple moving average is $5.98.

Trending Headlines about Archer Aviation

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

• Positive Sentiment: Boeing transaction expands Archer’s business. Archer agreed to acquire Boeing’s Wisk Aero, Insitu and SkyGrid subsidiaries in an all-stock transaction. The assets add autonomous flight, air-traffic-management and unmanned-systems capabilities, while Insitu contributes a profitable defense business generating more than $200 million in annual revenue. Archer Boeing acquisition announcement
• Positive Sentiment: Strategic validation from Boeing is supporting sentiment. Boeing will receive approximately a 19.75% stake in Archer, obtain a board seat and continue collaborating on autonomous-flight technology. Investors view Boeing’s involvement as a potential source of credibility, technical resources and commercial opportunities. Reuters Boeing Archer deal
• Positive Sentiment: Revenue exceeded expectations. Second-quarter revenue was $5 million versus a consensus estimate of $1.94 million. The results and management’s broader aerospace strategy reinforce the possibility that Archer can develop revenue streams beyond air taxis. Archer second-quarter results
• Neutral Sentiment: Analyst expectations remain favorable but speculative. The reported consensus target price is approximately $11.83, implying substantial potential upside from recent trading levels. However, target prices are estimates, and Archer remains a high-beta, pre-commercial aerospace company with a negative P/E ratio. Archer analyst price target
• Negative Sentiment: Archer remains loss-making and the transaction will dilute shareholders. The company reported a quarterly loss of approximately $0.34 per share, in line with consensus, and analysts expect a full-year loss. Boeing’s nearly 20% ownership stake also means existing shareholders are giving up a significant portion of the company in exchange for the acquired assets. Integration costs, certification hurdles and the uncertain timing of commercial air-taxi operations remain key risks. Archer second-quarter earnings and Boeing deal

Analyst Upgrades and Downgrades

ACHR has been the topic of several analyst reports. Weiss Ratings reiterated a “sell (d-)” rating on shares of Archer Aviation in a report on Friday, July 17th. Canaccord Genuity Group lowered their target price on shares of Archer Aviation from $13.00 to $12.00 and set a “buy” rating on the stock in a research note on Tuesday, May 12th. Finally, Barclays raised shares of Archer Aviation to a “hold” rating in a research report on Wednesday, July 29th. Four analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Archer Aviation currently has a consensus rating of “Hold” and a consensus target price of $11.83.

Insider Buying and Selling

In other Archer Aviation news, CFO Priya Gupta sold 9,860 shares of the company’s stock in a transaction on Monday, May 18th. The stock was sold at an average price of $5.95, for a total value of $58,667.00. Following the sale, the chief financial officer directly owned 189,050 shares in the company, valued at $1,124,847.50. This represents a 4.96% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Eric Lentell sold 48,169 shares of Archer Aviation stock in a transaction on Monday, May 18th. The shares were sold at an average price of $5.95, for a total value of $286,605.55. Following the transaction, the insider directly owned 141,084 shares of the company’s stock, valued at approximately $839,449.80. The trade was a 25.45% 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. Insiders have sold 250,743 shares of company stock worth $1,497,672 over the last 90 days. Corporate insiders own 5.55% of the company’s stock.

Hedge Funds Weigh In On Archer Aviation

A number of institutional investors and hedge funds have recently bought and sold shares of ACHR. Man Group plc raised its holdings in shares of Archer Aviation by 13,793.3% in the second quarter. Man Group plc now owns 4,212,722 shares of the company’s stock valued at $45,708,000 after buying an additional 4,182,400 shares during the last quarter. ARK Investment Management LLC lifted its position in shares of Archer Aviation by 12.4% during the fourth quarter. ARK Investment Management LLC now owns 35,170,701 shares of the company’s stock worth $264,484,000 after purchasing an additional 3,869,252 shares in the last quarter. State Street Corp increased its holdings in shares of Archer Aviation by 11.2% in the fourth quarter. State Street Corp now owns 32,773,136 shares of the company’s stock valued at $246,454,000 after purchasing an additional 3,293,130 shares in the last quarter. United Airlines Holdings Inc. bought a new position in Archer Aviation in the 4th quarter worth approximately $23,806,000. Finally, Adage Capital Partners GP L.L.C. lifted its holdings in Archer Aviation by 435.7% during the 2nd quarter. Adage Capital Partners GP L.L.C. now owns 3,750,000 shares of the company’s stock worth $40,688,000 after buying an additional 3,050,000 shares in the last quarter. Institutional investors and hedge funds own 59.34% of the company’s stock.

About Archer Aviation

Archer Aviation, Inc (NYSE: ACHR) is a California-based aerospace company developing electric vertical takeoff and landing (eVTOL) aircraft designed to serve as sustainable urban air mobility solutions. Founded in 2018 by Adam Goldstein and Brett Adcock, Archer focuses on the design, development and certification of zero-emissions air taxis aimed at reducing traffic congestion in densely populated metropolitan areas. The company’s flagship prototypes, “Maker” and “Midnight,” have been engineered to deliver quiet, efficient short-haul flights with ranges of up to 100 miles per charge.

Headquartered in Palo Alto, California, Archer operates a manufacturing facility in nearby Santa Cruz County and maintains research partnerships with automotive and energy companies, including a collaboration with Stellantis to integrate advanced battery systems.