BigBear.ai Stock In Focus Ahead Of Q4 Results: Wall Street Expects A Revenue Surge, But Retail’s Bearish

Shares of BigBear.ai Holdings Inc. (BBAI) gained nearly 2% on Wednesday as the company gears up to post its fourth-quarter results on Thursday.

The company is expected to post a loss of $0.05 per share in Q4, notably down from a loss of $0.14 per share during the year-ago period.

Wall Street expects the company to post revenue of $54.61 million during the quarter, rising nearly 35% year-on-year, from $40.56 million a year earlier.

Historical data shows that BigBear.ai has managed to beat earnings expectations in only two of the past four quarters while missing revenue estimates in all of them.

BigBear.ai is scheduled to post its Q4 results on Thursday during the after-market hours.

The Maryland-headquartered defense contractor bagged a U.S. Department of Defense (DOD) contract in February, helping the stock surge to a 32-month high.

The DOD contract involves BigBear.ai developing a Virtual Anticipation Network (VANE) prototype for the Chief Digital and Artificial Intelligence Office (CDAO).

BigBear.ai’s prototype will use custom AI models to improve the assessment of news originating from potential foreign adversaries.

Prior to the DOD contract, BigBear.ai also won a U.S. Navy contract to build engineering solutions, although the exact value of the deal was not disclosed.

However, since its February surge, the stock is down more than 50%, pointing to skepticism among investors about the company’s prospects.

Data from FinChat shows out of the five brokerage recommendations, two have a ‘Buy’ call, one has an ‘Outperform’ rating, and two have a ‘Hold’ suggestion.

Despite a surge of positive news and deal wins recently, retail sentiment on Stocktwits around the BBAI stock remained in the ‘bearish’ territory, pointing to caution among investors ahead of the Q4 results.

One user said they’re looking forward to what BigBear.ai’s new CEO, Kevin McAleenan, has in store for investors. This will be McAleenan’s first earnings call as the company’s CEO.

Another user expressed surprise that investors are gambling on the BBAI stock ahead of Thursday’s earnings.

However, not everyone is as bearish – one user posted that the BBAI stock offers a good risk/reward ratio.

BigBear.ai stock has surged 272% in the last six months, but its one-year returns are relatively less stellar, with gains of just over 25%.

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