What's Going On With Archer Aviation Stock After Q1 Earnings?

Archer Aviation Inc. ACHR shares are moving Friday after the company reported its first-quarter financial results. Here's a look at the details from the report. 

The Details:

Archer Aviation reported quarterly losses of 36 cents per share which missed the analyst consensus estimate of losses of 35 cents by 2.86%. 

The company reported a net loss for the first quarter of 2024 of $116.5 million. Archer said the loss represents investments required to achieve the key elements of its commercialization plan, including continued investment in the design, development, test and certification activities for its Midnight aircraft. It also included non-recurring payments to several of supply chain partners and investments to build out its testing and manufacturing facilities in San Jose, California. 

Archer Aviation said it sees second-quarter operating expenses in a range of $80 million to $95 million.

“The electrification of aviation continues to increasingly emerge into the mainstream every day. From the outset, we’ve been clear that our strategy is to keep the design of our first electric aircraft, Midnight, as simple as possible while delivering industry-leading performance balanced with safety," stated Adam Goldstein, CEO of Archer Aviation. 

"We are accomplishing this by partnering with what we believe to be the best suppliers in the aerospace industry, rather than take on the cost and risk of vertically integrating every aspect of a novel aircraft program. This capital-light strategy continues to pay dividends that are more clear today than ever, as we continue to make rapid progress towards commercializing electric aviation.”

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Is ACHR A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Archer Aviation‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Archer Aviation does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 14.51%, you'll need to buy a share of Ares Commerical Real Estate by the June 27. Once done, you can expect to receive a nominal payout of $0.25 on July 16.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Archer Aviation will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

ACHR Price Action: According to Benzinga Pro, Archer Aviation shares are up 0.13% at $3.77 at the time of publication Friday.

Image: Courtesy of Archer Aviation, Inc.