BigBear.ai BBAI is gearing up to unveil its second-quarter 2024 financial results on Aug 1.
The market is anticipating second-quarter 2024 revenues for BigBear.ai to hit $45.4 million, signaling an 18.04% uptick from the previous year.
Analysts’ estimates project a loss of 7 cents per share for the quarter, consistent over the past month. In the same period last year, BigBear.ai incurred a loss of 12 cents per share.
In the preceding four quarters, BigBear.ai fell short of the Zacks Consensus Estimate three times and exceeded it once, resulting in an average 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 may have influenced BigBear.ai’s performance in the second quarter.
Factors Impacting Q2 Performance
BigBear.ai likely reaped the rewards of increased government investments in its AI solutions.
The US Army G-3/5/7 bolstered BigBear.ai’s contract with an additional $8.3 million to fortify force generation and analytics capabilities, showcasing the company’s expertise in providing crucial IT solutions to the Army.
With continuous efforts to enhance its portfolio, BigBear.ai expanded its AI offerings through the acquisition of Pangiam earlier in 2024, which specializes in Vision AI for trade, travel, and digital identity sectors.
In the first quarter, BigBear.ai’s Pangiam collaborated with Melbourne Airport to trial Project Dartmouth, an AI/ML threat detection system for carry-on baggage. This successful trial in Australia is anticipated to have a positive impact on the company’s financial performance in the second quarter.
The strategic focus on broadening its product range enabled BigBear.ai to secure corporate clients, likely driving growth in the quarter. Its products have been integrated into solutions offered by industry leaders like Autodesk, Amazon, and Palantir.
For instance, Autodesk integrated BBAI’s ProModel Discrete Event Simulator with the AutoCAD platform, simplifying the simulation of intricate systems within AutoCAD.
Amazon Web Services (AWS) incorporated ProModel into its AWS ProServe to offer AI-driven warehousing, following a partnership with BigBear.ai. The benefits of this collaboration are expected to reflect positively in the quarter’s results.
Furthermore, Palantir integrated BBAI’s Observe, Orient, and Dominate products into its Foundry platform to streamline data collection, generate insights, and deliver intelligence. These collaborations with industry giants underscore the quality and reliability of BigBear.ai’s product suite.
Despite these advancements, challenging macroeconomic conditions and the impacts of the Virgin Orbit bankruptcy likely affected BigBear.ai’s second-quarter revenue performance.
Bigbear.ai is currently assigned a Zacks Rank #3 (Hold).
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