Should You Buy, Hold or Sell Archer Aviation Stock Ahead of Q4 Earnings?

Core Viewpoint - Archer Aviation Inc. is set to report its fourth-quarter 2024 results on February 27, 2025, with expectations of a revenue of $0.50 million and a loss of 24 cents per share, showing improvement from a loss of 29 cents in the prior-year quarter [1][2]. Financial Performance - The Zacks Consensus Estimate indicates that Archer Aviation has a history of earnings surprises, beating estimates in two of the last four quarters with an average surprise of 6.89$142 million, likely contributing to quarterly revenues [9]. - Archer Aviation is ramping up manufacturing and testing capabilities for the Midnight aircraft, which may lead to increased operating expenses due to development costs and higher labor and material expenses [10]. Technological Advancements - Recent technological advancements in the Midnight jet development are expected to enhance operational efficiency, potentially aiding the quarterly bottom line [11]. - The company received a certificate of occupancy for its high-volume manufacturing facility in December 2024, which may indicate the start of production [12]. Stock Performance - Archer Aviation's shares have increased by 85.5% over the past year, outperforming the Zacks aerospace-defense industry, which declined by 6.3% [13]. - Despite the stock's performance, the company's return on equity (ROE) is lower than that of its industry, indicating ongoing losses [14]. Market Outlook - Archer Aviation presents promising near-term prospects, but the sustainability of its business model remains uncertain due to the nascent eVTOL aircraft market and evolving demand [18]. - Public acceptance of eVTOLs may face challenges related to safety, noise, and affordability, which could limit growth potential [19]. - The company is also facing industry challenges such as supply-chain disruptions, rising jet fuel prices, and a shortage of skilled labor, which could impact project timelines and revenue generation [20].