Archer Aviation (NYSE:ACHR), a specialist in electric vertical takeoff and landing (eVTOL) aircraft, is seeing shares drop conspicuously today against a rising broader market. That’s despite management inking deals ahead of the firm’s May 9 first-quarter earnings disclosure. More than likely, Archer will need an encouraging result to inject confidence back into ACHR stock.
Earlier this week, Archer reportedly signed a framework agreement in Abu Dhabi. At the time, the capital of the United Arab Emirates was hosting the DRIFTx mobility event, which showcased the latest urban mobility innovations. The deal itself covers “multi-hundred-million dollar investments to accelerate Archer’s planned commercial air taxi operations in the UAE, slated to launch as soon as next year,” per UASweekly.com.
At the Dubai air show, Archer and the Abu Dhabi Investment Office also recently disclosed their intentions to make Archer the UAE’s first international launch partner. In addition, Archer signed a memorandum of understanding with Air Chateau International, which bills itself as the “first and only private helicopter operator” based in Dubai.
ACHR Stock Needs a Big Earnings Win
Despite the slate of deals, ACHR stock has not benefited from these developments. Over the trailing six months, ACHR has fallen nearly 29%. Since the start of this year, the stock is down almost 33%. With that in mind, a big earnings win is likely needed to arrest the volatility.
Naturally, the pressure will be on when Archer releases its first-quarter earnings report. For the period, analysts are anticipating a loss per share of 32 cents, which represents an improvement over the prior-year loss of 46 cents. On the top line, experts are modeling for sales of $500,000, with a high-side estimate of $1 million. In the year-ago quarter, the company did not generate any revenue.
For the full year of 2024, analysts anticipate a loss per share of $1.38 on sales of $2.5 million.
Why It Matters
Although ACHR stock has been printing red ink on the charts, Wall Street is resoundingly bullish on shares. ACHR enjoys a unanimous strong buy rating on TipRanks, based on three opinions. On average, the price target lands at $10.33, implying 165% upside potential. The most optimistic target calls for $12 per share, implying over 200% growth.
On the date of publication, Josh Enomoto did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
