BigBear.ai BBAI is scheduled to declare its second-quarter 2024 results on August 1.
Analysts predict second-quarter 2024 revenues to climb to $45.4 million, marking an 18.04% rise from the same period last year.
The consensus forecast for loss remains at 7 cents per share, unchanged over the past month. BigBear.ai registered a loss of 12 cents per share in the second quarter of the previous year.
In the last four quarters, the company outperformed the Zacks Consensus Estimate on one occasion but fell short in the other three, averaging 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
Let’s delve into the factors that potentially shaped BigBear.ai’s performance in Q2.
Factors Likely to Have Influenced Q2 Performance
BigBear.ai is expected to have reaped the benefits of increased government spending on its advanced AI solutions.
The U.S. Army G-3/5/7 extended BigBear.ai’s contract by $8.3 million to enhance essential force generation and analytics capabilities, highlighting the company’s proficiency in providing crucial IT solutions to the Army.
Continuing its expansion spree, BigBear.ai bolstered its AI offerings by acquiring Pangiam earlier this year, further enriching its product portfolio.
In a noteworthy trial, BigBear.ai’s Pangiam collaborated with Melbourne Airport to pilot Project Dartmouth, an AI/ML threat detection system for carry-on baggage, the first trial of its kind in Australia. This successful initiative is poised to boost the company’s financials in the second quarter and set the stage for broader implementations.
By focusing on diversifying its product range, BigBear.ai secured partnerships with key corporate players. This strategic move likely fueled growth in the second quarter, with its products seamlessly integrated into solutions by industry giants such as Autodesk, Amazon, and Palantir.
Autodesk, for instance, integrated BBAI’s ProModel Discrete Event Simulator with the AutoCAD platform, streamlining the simulation of intricate systems within AutoCAD.
Amazon Web Services (AWS) utilized BigBear.ai’s ProModel solution to establish AWS ProServe, enhancing its AI-driven warehousing capabilities. The synergy from this collaboration is expected to manifest in the recent quarter’s performance.
Palantir incorporated BBAI’s products into its Foundry platform, simplifying data collection, insights generation, and intelligence delivery. These industry leaders choosing BigBear.ai’s products underscore the quality and reliability of its offerings.
However, adverse macroeconomic conditions and losses stemming from the Virgin Orbit bankruptcy are anticipated to have dampened BigBear.ai’s top line for the second quarter of 2024.
Currently holding a Zacks Rank #3 (Hold), BigBear.ai’s earnings report will provide crucial insights for investors.
