BigBear.ai BBAI is gearing up to unveil its second-quarter 2024 financial results on August 1.
The predictions are optimistic with the Zacks Consensus Estimate forecasting second-quarter 2024 revenues to reach $45.4 million, marking an impressive 18.04% surge compared to the figures reported during the same period the previous year.
Despite the occasional winds of change, the expectations for losses have remained steady at 7 cents per share in the past month. This continues the trend set in the prior year’s quarter, where the reported loss per share stood at 12 cents.
BigBear.ai’s financial performance has seen its fair share of rollercoaster rides, with earnings missing the Zacks Consensus Estimate in three out of the last four quarters. On average, the company witnessed a negative earnings surprise of 55.36%.
BigBear.ai Holdings, Inc. Price and EPS Surprise
BigBear.ai Holdings, Inc. price-eps-surprise | BigBear.ai Holdings, Inc. Quote
Now, let’s delve into the factors that are likely to steer the ship for BigBear.ai this quarter.
Drivers of Q2 Performance
A key driving force behind BigBear.ai’s expected success this quarter lies in the expanding government interests in its potent AI solutions.
The recent extension of BigBear.ai’s contract with the US Army G-3/5/7 by $8.3 million to bolster force analytics underlines the company’s pivotal role in delivering essential IT solutions to the armed forces.
Furthermore, BigBear.ai has been diligently augmenting its arsenal both organically and through strategic acquisitions. The recent addition of Pangiam in 2024 has significantly enriched its AI capabilities, particularly in the realms of Vision AI for trade, travel, and digital identity applications.
In line with this trajectory, the collaboration between BigBear.ai’s Pangiam and Melbourne Airport in testing Project Dartmouth, an AI/ML threat detection system, bodes well for the company’s financial health in the current quarter, setting the stage for larger-scale implementations down the road.
Moreover, BigBear.ai’s strategic focus on diversifying its product offerings has paid off, evident in the successful partnerships established with industry giants like Autodesk, Amazon, and Palantir.
For instance, the integration of BBAI’s ProModel Discrete Event Simulator with Autodesk’s AutoCAD platform simplifies complex system simulations within AutoCAD, catering to the discerning needs of design professionals.
Similarly, Amazon Web Services (AWS)’ integration of ProModel solutions to develop AWS ProServe has empowered the provision of AI-driven warehousing solutions, thereby translating into tangible benefits for BigBear.ai.
Palantir’s utilization of BBAI’s Observe, Orient, and Dominate products within its Foundry platform to streamline data collection and derive actionable insights reflects the high standards of BigBear.ai’s product suite, affirmed by its close association with industry titans like Autodesk, Amazon, and Palantir.
However, adverse macroeconomic conditions and financial setbacks stemming from the Virgin Orbit bankruptcy might cast shadows on BigBear.ai’s second-quarter revenue performance.
Currently holding a Zacks Rank #3 (Hold), Bigbear.ai is navigating through a dynamic landscape driven by innovation and resilience.