Should You Buy, Hold, or Sell Archer Aviation Stock Ahead of Q2 Earnings?

Core Viewpoint - Archer Aviation Inc. is expected to report improved second-quarter results on August 11, 2025, with a projected loss of 19 cents per share, an improvement from a loss of 24 cents in the same quarter last year [1][5]. Financial Performance - The Zacks Consensus Estimate for Archer Aviation's earnings has improved over the past 60 days, with current estimates showing a loss of 19 cents per share for Q2 2025, compared to a loss of 20 cents per share a week ago [2]. - Archer Aviation has beaten the Zacks Consensus Estimate in two of the last four quarters, with an average negative surprise of 10.86% [2][3]. Strategic Partnerships - In June 2025, Archer Aviation announced a partnership with Jetex to develop infrastructure across 40 private terminals in over 30 countries, starting with the UAE, to support its commercial air taxi operations [6]. - The company also signed an agreement with PT. IKN to deploy its Midnight aircraft in Indonesia, marking the third country for its "Launch Edition" program [6]. Operational Developments - Archer Aviation is investing in engineering, manufacturing, and commercial activities for the Midnight aircraft, which may have led to increased operating expenses [8]. - Technological advancements in the Midnight jet development are expected to enhance operational efficiency, positively impacting quarterly results [9]. Liquidity Position - The company is likely to report a strong cash balance due to an $850 million equity raise, bringing total liquidity to approximately $2 billion [10]. Market Performance - Archer Aviation's shares have declined by 3.9% over the past six months, underperforming the Zacks aerospace-defense industry, which gained 19.7% [11]. - The trailing price/book (P/B) ratio of 5.32 indicates a discount compared to the industry average of 6.22 [12]. Investment Outlook - Archer Aviation shows promising near-term prospects, but long-term sustainability remains uncertain due to the nascent eVTOL aircraft market and potential public acceptance challenges [14]. - The company faces industry challenges, including supply-chain disruptions and labor shortages, which could impact project timelines [15].