Archer Aviation (NYSE:ACHR) stock continues to trend on social media on news that the company has received a contract worth up to $142 million from the U.S. Air Force. With the aircraft maker due to report its quarterly results on Aug. 10, many investors who have taken positions in ACHR stock are probably wondering what information the company will disclose on that day.
Among the topics the electric vertical takeoff and landing (eVTOL) aircraft company will probably discuss next week are its progress with regulators and partners. Additionally, though, investors should consider the company’s overall position and the outlook of ACHR stock as its latest report nears.
ACHR Stock: What Information Will Archer Disclose on Aug. 10?
Next week, Archer could offer more details about its deal with the Air Force and discuss the prospects of future, additional deals with the Pentagon. Additionally, the eVTOL maker will likely provide details about the progress that it’s making on the regulatory and technical fronts while touching on any new developments involving its commercial partners.
Among the companies in the latter category is United Airlines (NASDAQ:UAL), which has agreed to buy up to $1.5 billion of Archer’s aircraft and is advising on technical issues. Stellantis (NYSE:STLA) also makes the list of commercial partners, assisting Archer with manufacturing. In a June 27 U.S. Securities and Exchange Commission (SEC) filing, the automaker also reported a 10.6% stake in ACHR.
And of course, on Aug. 10, ACHR will disclose financial information. That will include the amount that the firm spent last quarter and the value of its remaining cash.
The Bigger Picture
Because eVTOL aircraft are significantly cheaper to operate than helicopters and certainly will enable travelers to get to their destinations much faster than cars, I believe they have a bright future. Archer has also made progress on the regulatory front, while its partnerships with United, Stellantis and others are certainly very encouraging.
Still, the company is facing competition from multiple firms, including Joby Aviation (NYSE:JOBY), which also has strong partnerships and has made good progress with the Federal Aviation Administration (FAA).
Another competitor is major Brazilian aircraft maker Embraer (NYSE:ERJ). The firm has launched an eVTOL subsidiary and could convince a number of the airlines with which it already does business to partner with the unit.
Finally, it’s worth noting that ACHR stock has a market capitalization of around $1.6 billion after its recent gains. As a result, a significant amount of success is already built into the share price and any major setbacks that Archer suffers would likely cause shares to drop sharply.
On the date of publication, Larry Ramer 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.
