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Tesla (TSLA) to Report Q1 Earnings: What's in the Cards?
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Tesla, Inc. (TSLA - Free Report) is expected to report first-quarter earnings results on May 2, after the market closes. In the last reported quarter, the electric carmaker delivered earnings beat of 4.7%. The long-term expected earnings growth for the company (over three to five years) is currently pegged at 25%.
In the trailing four quarters, the company missed estimates twice and beat on the other two, with an average negative earnings surprise of 31.2%. Year to date, shares of Tesla have declined 5.6%.
Let’s see, how things are shaping up for this announcement.
In first-quarter 2018, Tesla produced 34,494 vehicles, up 40% from fourth-quarter 2017. This happens to be the most productive quarter in the history of the company. Out of the total vehicles produced, 24,728 were Model S and Model X while 9,766 were mass-market Model 3 sedans. By the end of first-quarter 2018, production of Model 3 rose considerably on a sequential basis, even though the company missed the target of producing 2,500 units per week. In reality, it produced 2020 Model 3 cars over the last seven days of the quarter. Despite the production-target miss, the first-quarter 2018 performance of Tesla looks encouraging.
Although first-quarter revenues are anticipated to increase, high costs associated with the company’s Model 3 ramp up are likely to have some negative impact on its results. In fact, a higher mix of Model 3s in the company’s automotive sales mix may have some negative impact on the gross margin in the short-run.
Earnings Whispers
Our proven model does not predict earnings beat for Tesla this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as you will see below.
Zacks Earnings ESP: Tesla’ Earnings ESP is -8.67% as the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of $3.66 and $3.37, respectively.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Tesla currently carries a Zacks Rank #3.
We caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Stocks to Consider
Here are a few stocks worth considering from the same space with the right combination of elements to outpace earnings estimates this time around:
American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) has an Earnings ESP of +3.45% and a Zacks Rank of 3. It will report first-quarter 2018 results on May 4.
Magna International Inc. (MGA - Free Report) has an Earnings ESP of +1.30% and a Zacks Rank of 3. It is expected to report first-quarter 2018 results on May 10.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Tesla (TSLA) to Report Q1 Earnings: What's in the Cards?
Tesla, Inc. (TSLA - Free Report) is expected to report first-quarter earnings results on May 2, after the market closes. In the last reported quarter, the electric carmaker delivered earnings beat of 4.7%. The long-term expected earnings growth for the company (over three to five years) is currently pegged at 25%.
In the trailing four quarters, the company missed estimates twice and beat on the other two, with an average negative earnings surprise of 31.2%. Year to date, shares of Tesla have declined 5.6%.
Let’s see, how things are shaping up for this announcement.
Tesla, Inc. Price and EPS Surprise
Tesla, Inc. Price and EPS Surprise | Tesla, Inc. Quote
Factors Influencing This Quarter
In first-quarter 2018, Tesla produced 34,494 vehicles, up 40% from fourth-quarter 2017. This happens to be the most productive quarter in the history of the company. Out of the total vehicles produced, 24,728 were Model S and Model X while 9,766 were mass-market Model 3 sedans. By the end of first-quarter 2018, production of Model 3 rose considerably on a sequential basis, even though the company missed the target of producing 2,500 units per week. In reality, it produced 2020 Model 3 cars over the last seven days of the quarter. Despite the production-target miss, the first-quarter 2018 performance of Tesla looks encouraging.
Although first-quarter revenues are anticipated to increase, high costs associated with the company’s Model 3 ramp up are likely to have some negative impact on its results. In fact, a higher mix of Model 3s in the company’s automotive sales mix may have some negative impact on the gross margin in the short-run.
Earnings Whispers
Our proven model does not predict earnings beat for Tesla this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as you will see below.
Zacks Earnings ESP: Tesla’ Earnings ESP is -8.67% as the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of $3.66 and $3.37, respectively.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Tesla currently carries a Zacks Rank #3.
We caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Stocks to Consider
Here are a few stocks worth considering from the same space with the right combination of elements to outpace earnings estimates this time around:
Meritor, Inc. has an Earnings ESP of +0.39% and a Zacks Rank of 3. It is expected to report first-quarter 2018 results on May 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) has an Earnings ESP of +3.45% and a Zacks Rank of 3. It will report first-quarter 2018 results on May 4.
Magna International Inc. (MGA - Free Report) has an Earnings ESP of +1.30% and a Zacks Rank of 3. It is expected to report first-quarter 2018 results on May 10.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>