JOBY's Q3 Earnings Coming Up: Time to Buy, Sell or Hold the Stock?

Joby Aviation JOBY is scheduled to report third-quarter 2025 results on Nov. 5, after market close.

The Zacks Consensus Estimate for the to-be-reported quarter’s loss and revenues is pegged at 18 cents per share and $2.42 million, respectively.

The loss estimate for the to-be-reported quarter has remained stable over the past 60 days. The Zacks Consensus Estimate for quarterly revenues indicates a huge uptick from the year-ago quarter’s figure of just $0.03 million. In the year-ago quarter, Joby Aviation incurred a loss of 21 cents per share.

For 2025, the Zacks Consensus Estimate for JOBY’s revenues is pegged at $9.64 million compared with just $0.14 million reported a year ago. The consensus mark for 2025 loss per share is currently pegged at 88 cents compared with the loss of 79 cents reported a year ago.

Joby Aviation’s earnings have lagged the Zacks Consensus Estimate in two of the past four quarters, reporting in-line earnings on the other occasions. The average miss is 9.6%.

Joby Aviation Price and EPS Surprise

Joby Aviation price-eps-surprise | Joby Aviation. Quote

Q3 Earnings Whispers for JOBY Stock

Our proven model does not conclusively predict an earnings beat for JOBY this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

JOBY has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Shaping JOBY’s Q3 Results

We expect Joby Aviation’s third-quarter bottom-line performance to have been affected by high operating expenses. Elevated research and development costs, and selling, general and administrative expenses are likely to have pushed up operating costs.

Heavy investments might have also hindered the company’s prospects. With JOBY focusing on the electric vertical takeoff and landing (eVTOL) space, R&D expenses are likely to have been high. Developing the necessary infrastructure and overcoming regulatory roadblocks are all critical hurdles. Moreover, the cost-intensive nature of eVTOL development seeks additional capital, which can pose challenges for companies like Joby Aviation.

JOBY Stock Underperforms Industry & ACHR

JOBY stock has not had an outstanding run on the bourses over the past three months, declining in double-digits and lagging the Zacks Transportation - Airline industry and another eVTOL-focused stock, Archer Aviation ACHR.

Three-Month Stock Price Comparison

Valuation remains a sticking point. In terms of price-to-book value, JOBY is trading at 15.55X, higher than its industry and peer Archer Aviation. Like Joby Aviation, Archer Aviation also has a Value Score of F.

JOBY’s P/B TTM vs. Industry, & ACHR

How to Play JOBY Pre-Q3 Earnings

The premium valuation reflects confidence in Joby Aviation’s long-term stability, but it also suggests limited near-term upside potential. With the company facing certain risks, like the absence of significant revenues and uncertainties related to commercialization, jumping in now might mean overpaying.

JOBY is aiming to start commercial operations soon. As part of its efforts related to air taxi commercialization, Joby Aviation recently completed the acquisition of Blade Air Mobility’s urban air mobility passenger business. Following the acquisition, Joby Aviation and Uber Technologies UBER announced plans to bring Blade’s air mobility services to the Uber app by 2026. Joby Aviation and Uber have collaborated on advancing the future of urban air mobility since 2019. In 2021, Joby Aviation acquired Uber’s Elevate division, which was instrumental in shaping the urban air mobility industry and creating key tools for market selection, demand forecasting and multi-modal operations.

While Joby Aviation is making notable progress in the fast-evolving eVTOL space, challenges remain in terms of scalability and public acceptance. Only time will tell how the market and customer demand for eVTOLs will turn out. Public acceptance of eVTOLs as an alternative to traditional transport methods could face hurdles related to safety, noise and affordability concerns.

In view of the associated risks, it will be prudent for investors to stay away from investing in the stock for now and wait for the upcoming quarterly results to get more clarity on near-term prospects.

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This article originally published on Zacks Investment Research (zacks.com).

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