BigBear.ai to Report Q2 Earnings: What's in the Cards?

BigBear.ai BBAI is set to report second-quarter 2024 results on Aug 1.

The Zacks Consensus Estimate for second-quarter 2024 revenues is pegged at $45.4 million, indicating a 18.04% increase from the year-ago quarter's reported figure.

The consensus mark for loss has remained at 7 cents per share in the past 30 days. The company reported a loss of 12 cents in the year-ago quarter.

BBAI's earnings missed the Zacks Consensus Estimate in three of the trailing four quarters while beating the same on one occasion, with a negative earnings surprise of 55.36%, on average.

Factors Likely to Have Influenced Q2 Performance

BigBear.ai is likely to have benefited from growing government investments in its robust AI solutions.

The US Army G-3/5/7 extended BigBear.ai's contract by $8.3 million to sustain and modernize vital force generation and analytics capabilities. This reaffirms BigBear.ai's leadership in delivering essential IT solutions to the Army.

It has been continuously enhancing its portfolio in organic and inorganic ways. Earlier in 2024, the company enhanced its AI portfolio by acquiring Pangiam which offers Vision AI for the trade, travel and digital identity market.

In the first quarter, BigBear.ai's Pangiam partnered with Melbourne Airport to trial Project Dartmouth, an AI/ML threat detection system for carry-on baggage, marking the first such trial in Australia. This is expected to have boosted its financial performance in the second quarter by paving the way for future large-scale deployments.

BigBear.ai's sustained focus on expanding its product portfolio has helped it win corporate clients. This is likely to have driven growth during the second quarter. The company's products have been integrated into the solutions of Autodesk ADSK, Amazon and Palantir.

Autodesk integrated BBAI's ProModel Discrete Event Simulator with the AutoCAD platform to simplify the simulation of complex systems within AutoCAD.

AMZN's Amazon Web Services (AWS) integrated ProModel solution to build AWS ProServe that enabled it to provide AI-driven warehousing. Benefits from this partnership are likely to have been reflected in the quarter under review.

Palantir integrated BBAI's Observe, Orient and Dominate products into its Foundry platform to simplify data collection, generate insights and deliver intelligence. Autodesk, Amazon and Palantir are the undisputed leaders of their industry. The adoption of BBAI's products by these giants reflects the quality assurance of its product suite.

However, BigBear's second-quarter 2024 top line is expected to have been affected by challenging macroeconomic conditions and losses from the Virgin Orbit bankruptcy.

Bigbear.ai currently has a Zacks Rank #3 (Hold).

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