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Green Power (GP) Q1 Loss Wider Than Expected, Revenues Rise

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Green Power Motor Company (GP - Free Report) incurred first-quarter fiscal 2023 adjusted loss of 19 cents per share, wider than the Zacks Consensus Estimate of a loss of 9 cents. Also, the figure was wider than the year-ago quarter’s loss of 11 cents a share. Revenues surged 29% year over year to $3.85 million but missed the Zacks Consensus Estimate of $6 million.

Region-wise, the United States registered revenues of $3.6 million, rising from $2.6 million in the year-ago period. The Canada unit recorded revenues of $161,450, falling from $323,900.

Quarter Highlights

During the quarter, GreenPower delivered its first five 22’ cargo vans. Currently, it has nearly 40 EV Star Cargos in finished goods inventory.

It also entered into a lease-purchase agreement with West Virginia to develop an 80,000-square-foot facility on six acres of land to manufacture all-electric school buses for the U.S. market.

Also, GreenPower began manufacturing its first few tranches of EV Star CCs for the 1,500-unit purchase and sale contract with Workhorse. By the end of the quarter, the first 100 EV Star CCs were almost completed, the next tranche had gone into production and key components for additional tranches had been ordered.

Financial Highlights

Gross profit rose to $1.1 million from the year-ago quarter’s $850,632 despite the cost of sales rising to $2.7 million from $2.1 million on higher year-over-year sales. Sales, general and administrative expenses flared up 82.7% to $5.3 million from $2.9 million in the year-ago quarter.

Inventory in the quarter was $39.7 million, including finished goods of $24.6 million.

Cash and restricted cash at the end of the quarter was $5.4 million, down from $9.1 million at the end of the year-ago quarter. Cash flow used in operating activities was $2.4 million compared with $1.2 million in the corresponding quarter of fiscal 2022.

As of Jun 30, 2022, the company’s line of credit had a credit limit of up to $8,000,000.

Zacks Rank & Key Picks

GP carries a Zacks Rank #3 (Hold), currently.

Better-ranked players in the auto space include Harley-Davidson (HOG - Free Report) , Genuine Parts Company (GPC - Free Report) and Tesla Inc. (TSLA - Free Report) , each carrying a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Harley-Davidson has an expected earnings growth rate of 6.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 8.5% upward in the past 30 days.

Harley-Davidson’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. HOG pulled off a trailing four-quarter earnings surprise of 49.52%, on average. The stock has risen 0.8% in the past year.

Genuine Parts has an expected earnings growth rate of 15.3% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 1.5% upward in the past 30 days.

Genuine Parts’ earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. GPC pulled off a trailing four-quarter earnings surprise of 11.03%, on average. The stock has risen 28.2% over the past year.

Tesla has an expected earnings growth rate of 74.6% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 5.4% upward in the past 30 days.

Tesla’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 32.17%, on average. The stock has risen 39.4% in the past year.

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