Tesla ( TSLA Quick Quote TSLA - Free Report) is slated to release fourth-quarter 2020 results on Jan 27, after the closing bell. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at 85 cents per share and $10 billion, respectively.
Tesla delivered stellar results for third-quarter 2020, posting profit for the fifth straight quarter. The electric-vehicle (EV) pioneer beat third-quarter 2020 earnings estimates on higher-than-anticipated automotive revenues, thanks to record deliveries. It has managed to beat earnings estimates in each of the trailing four quarters, with the average being 319.7%. This is depicted in the graph below:
The Zacks Consensus Estimate for Tesla’s fourth-quarter earnings per share has been revised upward by 5 cents in the past 30 days. The figure indicates a year-over-year uptick of 97%. The Zacks Consensus Estimate for fourth-quarter revenues indicates year-over-year growth of 37.4%.
Our proven model predicts an earnings beat for Tesla for the to-be-reported quarter, as it has the right combination of the two key ingredients. A 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see . the complete list of today’s Zacks #1 Rank stocks here Earnings ESP: Tesla has an Earnings ESP of +17.23%. This is because the Most Accurate Estimate is pegged 15 cents higher than the Zacks Consensus Estimate. Zacks Rank: It sports a Zacks Rank of 1, currently. Factors at Play
Amid rising popularity of green vehicles, Tesla’s delivery count for fourth-quarter 2020 hit a new record. It smashed the company’s previous best in the third quarter, which witnessed deliveries of 139,300 units. During the to-be-reported quarter, the EV king registered deliveries of 180,570 units, comprising 161,650 Model 3 and Model Y cars and 18,920 Model S and X vehicles. Total fourth-quarter deliveries were up more than 61% on a year-over-year basis.
Increasing deliveries of Model 3, which forms a major chunk of the automaker’s overall deliveries, are likely to have aided Tesla’s automotive revenues in the to-be-reported quarter. Also, ramped up production and deliveries of Model Y are likely to have buoyed its top line. The Zacks Consensus Estimate for automotive revenues is pegged at $8,703 million, indicating yearly and sequential growth of 43.2% and 18.5%, respectively.
Solar and storage deployments are also expected to have witnessed significant growth, aided by Megapack and Powerwall products. The consensus mark for energy generation and storage revenues is pegged at $528 million, indicating an increase from the year-ago level of $372 million. The same for revenues from Automotive Leasing & Services and Others is pegged at $271 million and $657 million, indicating year-over-year growth of 8.8% and 23.7%, respectively.
All in all, robust Model 3/Y demand, ramped up output from the Shanghai Gigafactory, and solid performance of the energy and storage business are likely to enable Tesla to maintain its winning streak in the to-be-reported quarter as well. Encouragingly, the company hit a major milestone during the quarter by securing a prestigious spot in the S&P 500 Index on Dec 21, 2020.
Other S&P 500 Stocks With Favorable Combination
Here are some other noted S&P 500 firms, which, according to our model, also have the right combination of elements to post an earnings beat in the quarter to be reported:
Facebook ( FB Quick Quote FB - Free Report) has an Earnings ESP of +1.67% and currently carries a Zacks Rank #2. The company is slated to release fourth-quarter 2020 earnings on Jan 27. Alphabet ( GOOGL Quick Quote GOOGL - Free Report) has an Earnings ESP of +0.75% and carries a Zacks Rank #2 currently. The company is slated to release fourth-quarter 2020 earnings on Feb 2. Amazon ( AMZN Quick Quote AMZN - Free Report) has an Earnings ESP of +8.92% and carries a Zacks Rank #3 at present. The company is slated to release fourth-quarter 2020 earnings on Feb 2. More Stock News: This Is Bigger than the iPhone!
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