Archer Aviation (NYSE:ACHR) stock is in focus after the company disclosed that it had showcased its Midnight electric vertical take-off and landing (eVTOL) aircraft to a group a leaders from the U.S. Marine Corps (USMC). Archer believes that Midnight can provide U.S. government agencies with services such as personnel transport and rescue operations while operating as a quieter and cost-efficient alternative to traditional helicopters. In addition, the Midnight was designed for quick flights with a range of up to 100 miles and a target payload of about 1,000 pounds.
“The low cost, low noise, high safety nature of Archer’s Midnight makes it a very compelling aircraft for all branches of the U.S. military to integrate into their fleet,” said Government Services Advisory Board Member Clay Hutmacher. “We continue to see increasing interest in the capabilities of eVTOL aircraft across the military.”
Archer added that it is in close communication with its government advisory board, which was created last May in order to explore Midnight commercialization opportunities with the U.S. government and public safety organizations.
ACHR Stock: Archer Discloses Visit from the U.S. Marine Corps
Last week, Archer announced that it had expanded its existing partnership with the Department of Defense (DoD) by entering into new contracts worth up to $142 million with the U.S. Air Force. The execution phase of the partnership includes the delivery of up to six Midnight aircrafts to the Air Force, pilot training, flight test data sharing and maintenance.
Archer has released these new developments ahead of its earnings release on Aug. 10 after the market close. Analysts are expecting the aviation company to report $0 in revenue, an adjusted net loss of $80 million and an adjusted EPS loss of 32 cents. What’s more, if Archer’s earnings come above of expectations, a 13.2% short interest could help propel shares higher.
Analyst expectations for $0 in revenue isn’t all too surprising, as Archer has not yet collected revenue from its Midnight vehicle. The conforming version of the aircraft is expected to be completely assembled by the fourth quarter, while piloted flight test operations have been targeted for early 2024. By 2025, the conforming Midnight is expected to enter into service.
On the date of publication, Eddie Pan 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.
