Surf Air Mobility (NYSE:SRFM) Posts Quarterly Earnings Results, Misses Expectations By $0.03 EPS

Surf Air Mobility (NYSE:SRFM) posted its earnings results on Thursday. The company reported ($0.16) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.13) by ($0.03), FiscalAI reports. The firm had revenue of $36.46 million for the quarter.

Here are the key takeaways from Surf Air Mobility’s conference call:

• Third-quarter revenue reached a company record of $36.5 million, up 25% year over year, while the Adjusted EBITDA loss narrowed 36% from the prior quarter to $6.7 million.
• Surf On Demand revenue more than doubled year over year to a record $19 million; gross margin improved by over four percentage points year over year and over 10 points sequentially.
• The airline generated $1.2 million in Adjusted EBITDA, with year-to-date operating improvements including lower costs and fuel burn. The company also secured a four-year, $19.4 million Lanai service contract.
• SurfOS is still at an early commercialization stage: third-quarter revenue was not material, and longer-than-expected implementations contributed to the company modifying its full-year Adjusted EBITDA loss outlook to $35 million–$32 million. Management expects meaningful SurfOS revenue in 2027 but did not provide a forecast.

Surf Air Mobility Price Performance

Shares of NYSE SRFM traded down $0.09 during trading on Friday, reaching $0.60. 631,974 shares of the stock traded hands, compared to its average volume of 4,619,469. Surf Air Mobility has a 52-week low of $0.46 and a 52-week high of $3.73. The company has a 50-day moving average of $0.80 and a 200-day moving average of $1.17. The stock has a market capitalization of $74.55 million, a P/E ratio of -0.37 and a beta of 2.65.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of SRFM. Balefire LLC bought a new position in Surf Air Mobility in the 1st quarter valued at $376,000. J. Derek Lewis & Associates Inc. grew its position in shares of Surf Air Mobility by 84.3% during the 1st quarter. J. Derek Lewis & Associates Inc. now owns 293,000 shares of the company’s stock valued at $337,000 after purchasing an additional 134,000 shares in the last quarter. Engineers Gate Manager LP increased its holdings in shares of Surf Air Mobility by 147.4% in the second quarter. Engineers Gate Manager LP now owns 96,389 shares of the company’s stock worth $112,000 after purchasing an additional 57,423 shares during the period. Squarepoint Ops LLC purchased a new stake in shares of Surf Air Mobility in the second quarter worth $53,000. Finally, Ritholtz Wealth Management purchased a new position in Surf Air Mobility during the third quarter worth about $37,000. 17.68% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities research analysts have commented on the stock. Canaccord Genuity Group decreased their price objective on shares of Surf Air Mobility from $1.50 to $1.00 and set a “hold” rating for the company in a research note on Monday, August 17th. Wall Street Zen cut shares of Surf Air Mobility from a “hold” rating to a “sell” rating in a research report on Monday, August 17th. HC Wainwright restated a “buy” rating on shares of Surf Air Mobility in a research note on Tuesday, August 11th. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Surf Air Mobility in a report on Thursday, October 22nd. Three investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $2.92.

Surf Air Mobility Company Profile

Surf Air Mobility Inc operates as an electric aviation and air travel company in the United States. The company offers an air mobility platform with scheduled routes and on demand charter flights operated by third parties. Surf Air Mobility Inc is headquartered in Hawthorne, California.