Why BigBear.ai Holdings Stock Dived by Almost 14% Today

The company posted big misses on both the top and bottom lines in its first quarter.

BigBear.ai Holdings (BBAI -13.87%) might be on the cutting edge of technology, but its stock was dulled by a sell-off Friday. Investors sold out of the artificial intelligence (AI) specialist on the back of a rather weak earnings report. When the smoke cleared, the share price was down nearly 14%, contrasting sharply with the 1.3% gain of the benchmark S&P 500 index.

Significant declines and big misses in the first quarter

BigBear.ai fell well short of analyst estimates in its opening quarter of 2024.

For the period, the AI specialist earned revenue of just over $33 million, representing a decline of more than 21% on a year-over-year basis. The company attributed the decline to the expected wind-down of a program it had with the U.S. Air Force and the bankruptcy of satellite company Virgin Orbit, another client.

Further down the profit-and-loss sheet, BigBear.ai’s net loss deepened considerably. It tumbled to more than $125 million, or $0.67 per share, from the year-ago shortfall of slightly over $26 million.

Neither headline figure came close to the average analyst estimate. Collectively, pundits following the AI stock were anticipating nearly $44 million for revenue and a much lighter per-share net loss of $0.06.

2024 revenue guidance in line with analyst figure

At least BigBear.ai’s guidance didn’t fall short. The company is expecting to post $195 million to $215 million in revenue for the entirety of 2024; the average analyst projection for the metric is slightly less than $203 million. Management did not proffer any profitability forecasts.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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