Investors are bailing on Archer Aviation Inc (NYSE: ACHR) this morning after the eVTOL firm reported disappointing financial results for its Q4.
ACHR was broadly expected to generate up to $0.2 million in revenue in the fourth quarter.
However, the flying robotaxi company not only failed to generate any revenue in the three months ending December 31st, it actually lost $1.69 on a per-share basis as well – significantly more than 30 cents a share only that experts had forecast.
Archer Aviation stock is down nearly 15% following its quarterly release on Friday.
Archer Aviation stock tanks after Q4 earnings
Shares of Archer Aviation are taking a hit today also because its management recorded over $98 million of adjusted operating expenses for the fourth quarter.
That number came in above the company’s guidance, indicating continued high spending, which remains a concern for investors even though it has a relatively strong balance sheet with more than $1 billion in overall liquidity.
Part of it may have to do with ACHR’s guidance that calls for an adjusted EBITDA loss of another $100 million (roughly) in Q1.
Meanwhile, the eVTOL company is yet to secure FAA type certification, which spells uncertainty about the launch of its commercial operations in the United States.
The positives in ACHR’s quarterly release
On the plus side, the NYSE listed firm has secured Abu Dhabi Aviation as its first launch edition partner.
That’s meaningfully positive since ACHR could generate tens of millions in revenue as the aviation company delivers on its plans of using Archer aircraft by the end of 2025.
Additionally, the flying robotaxi specialist is committed to manufacturing up to 10 of its Midnight aircraft this year now that its Georgia factory (ARC) has been completed.
Archer Aviation is also “eyeing strong demand in the defense market and beyond for its planned hybrid aircraft that it’s developing under an exclusive partnership with Anduril Industries Inc,” according to its press release on Friday.
Should you invest in Archer Aviation stock today?
Archer Aviation stock is under pressure despite a bullish note from HCW analyst Amit Dayal today.
Dayal reiterated his “buy” rating on ACHR shares this morning that he’s convinced will hit $12.50 this year.
The analyst’s price objective indicates potential upside of about 80% from current levels.
HCW is positive on Archer Aviation as it’s making good progress towards commercialising, and looks positioned to start generating sales via the launch edition programme by the end of 2025.
Investors could also take heart in the company’s cash stature that’s strong enough to fund its operations for another 10 months at least, Dayal told clients in a research note today.
He’s bullish on the firm’s partnership with Anduril as well.
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