BigBear.ai is projected to report a 33.54% increase in revenue year-over-year, with expectations set at approximately $54.17 million for Q4 2024.
The company is expected to post an earnings per share (EPS) of -$0.05, showing an improvement from the previous year’s loss.
Despite revenue growth, BigBear.ai’s financial health indicators such as the negative price-to-earnings (P/E) ratio and negative enterprise value to operating cash flow ratio highlight ongoing profitability and cash flow challenges.
BigBear.ai (NYSE:BBAI) is a company that specializes in artificial intelligence solutions, catering to both commercial and government sectors. As the company prepares to release its fourth-quarter 2024 earnings on March 6, 2025, Wall Street anticipates an earnings per share (EPS) of -$0.05 and revenue of approximately $54.6 million.
The company’s revenue is projected to be $54.17 million, a 33.54% increase from the same quarter last year, as highlighted by Zacks. This growth is attributed to an expanding client base and increased government investment in AI solutions. Despite this, the expected loss per share remains at 5 cents, an improvement from the previous year’s 14 cents per share loss.
Historically, BigBear.ai has had mixed results, missing the Zacks Consensus Estimate in two of the last four quarters, while exceeding it in the other two. This has resulted in an average negative earnings surprise of 60.72%. The company’s negative price-to-earnings (P/E) ratio of -6.91 indicates ongoing losses, while a price-to-sales ratio of 7.65 suggests investors are willing to pay $7.65 for every dollar of sales.
The enterprise value to sales ratio is 8.55, reflecting the company’s valuation in relation to its revenue. However, the enterprise value to operating cash flow ratio is significantly negative at -56.67, highlighting challenges in generating cash flow from operations. The earnings yield is -14.47%, further emphasizing the company’s current unprofitability.
BBAI’s debt-to-equity ratio of 2.09 indicates a higher level of debt compared to equity, while a current ratio of 2.06 suggests the company has a good level of liquidity to cover its short-term liabilities. As the earnings release approaches, investors will be keen to see if the company can meet or exceed expectations.
