Archer Aviation is set to report third-quarter earnings on Nov. 9, as the company awaits completion of its planned purchase of three Boeing subsidiaries: Wisk Aero, Insitu and SkyGrid. Insitu alone is expected to add more than $200 million in annual revenue, while Boeing would receive about 19.75% of Archer's pre-closing share count, diluting existing shareholders. Archer generated just $5 million in revenue last quarter and reported a $263 million net loss in the second quarter, and it expects an adjusted EBITDA loss of $170 million to $200 million for Q3, though it ended June with about $1.6 billion in cash and short-term investments. At around $4 a share, Archer's roughly $3 billion market value is below rival Joby Aviation's roughly $4.6 billion. The author is intrigued by Archer's defense opportunities but does not expect a spectacular quarterly report, and suggests investors may wait for more material certification progress.
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