We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What's in Store for Nikola (NKLA) This Earnings Season?
Read MoreHide Full Article
Nikola Corporation (NKLA - Free Report) is scheduled to release fourth-quarter 2020 results on Feb 25, after the closing bell. The Zacks Consensus Estimate is pegged at a loss of 21 cents per share on revenues of $0.06 million for the quarter.
In the last reported quarter, the company delivered a narrower-than-anticipated loss of 31 cents per share. However, this loss was wider than the year-ago loss of 6 cents per share.
For the trailing two quarters, Nikola beat estimates on one occasion, missing in the other, the average negative surprise being -1.43%. This is depicted in the graph below:
The Zacks Consensus Estimate for Nikola’s fourth-quarter loss per share has widened by two cents over the past 60 days.
What the Zacks Model Says
Our proven Zacks model does not conclusively predict an earnings beat for Nikola 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. However, that is not the case here as elaborated below.
Earnings ESP: Nikola has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Nikola currently carries a Zacks Rank of 4 (Sell).
Let's delve deeper into the factors that are likely to have impacted Nikola’s fourth-quarter performance.
Key Factors
The third quarter of 2020, especially September, was particularly turbulent for Nikola, wherein the company was accused of fraud by Hindenburg Research. The fourth quarter seems equally gloomy for Nikola, once dubbed as the Tesla (TSLA - Free Report) of the trucking industry. In fact in November, Nikola and General Motors (GM - Free Report) revised the initial agreement that was announced in September. Per the new agreement — a non-binding memorandum of understanding —General Motors will only be supplying fuel cells to Nikola, rather than receiving an equity stake in the company and building Nikola’s Badger pick-up truck. With General Motors backing out from building the Badger, Nikola was compeled to altogether abandon the Badger project.
To further worsen matters, in December, Nikola and Republic Services (RSG - Free Report) discontinued their collaboration on refuse truck development. The goal of the collaboration was to build an industry-first fully-integrated refuse truck based on a zero-emission battery-electric drive platform. However, the program was terminated when the companies realized that the project would result in longer-than-expected development time and unexpected costs. This has resulted in the cancellation of the previously-announced vehicle order. This is also likely to have hindered the company’s performance during the fourth quarter.
Additionally, soaring technology costs and operational expenses (including SG&A and R&D costs) to develop advanced vehicles are likely to have dented margins during the quarter-to-be-reported.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
What's in Store for Nikola (NKLA) This Earnings Season?
Nikola Corporation (NKLA - Free Report) is scheduled to release fourth-quarter 2020 results on Feb 25, after the closing bell. The Zacks Consensus Estimate is pegged at a loss of 21 cents per share on revenues of $0.06 million for the quarter.
In the last reported quarter, the company delivered a narrower-than-anticipated loss of 31 cents per share. However, this loss was wider than the year-ago loss of 6 cents per share.
For the trailing two quarters, Nikola beat estimates on one occasion, missing in the other, the average negative surprise being -1.43%. This is depicted in the graph below:
Nikola Corporation Price and EPS Surprise
Nikola Corporation price-eps-surprise | Nikola Corporation Quote
Trend in Estimate Revisions
The Zacks Consensus Estimate for Nikola’s fourth-quarter loss per share has widened by two cents over the past 60 days.
What the Zacks Model Says
Our proven Zacks model does not conclusively predict an earnings beat for Nikola 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. However, that is not the case here as elaborated below.
Earnings ESP: Nikola has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Nikola currently carries a Zacks Rank of 4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Let's delve deeper into the factors that are likely to have impacted Nikola’s fourth-quarter performance.
Key Factors
The third quarter of 2020, especially September, was particularly turbulent for Nikola, wherein the company was accused of fraud by Hindenburg Research. The fourth quarter seems equally gloomy for Nikola, once dubbed as the Tesla (TSLA - Free Report) of the trucking industry. In fact in November, Nikola and General Motors (GM - Free Report) revised the initial agreement that was announced in September. Per the new agreement — a non-binding memorandum of understanding —General Motors will only be supplying fuel cells to Nikola, rather than receiving an equity stake in the company and building Nikola’s Badger pick-up truck. With General Motors backing out from building the Badger, Nikola was compeled to altogether abandon the Badger project.
To further worsen matters, in December, Nikola and Republic Services (RSG - Free Report) discontinued their collaboration on refuse truck development. The goal of the collaboration was to build an industry-first fully-integrated refuse truck based on a zero-emission battery-electric drive platform. However, the program was terminated when the companies realized that the project would result in longer-than-expected development time and unexpected costs. This has resulted in the cancellation of the previously-announced vehicle order. This is also likely to have hindered the company’s performance during the fourth quarter.
Additionally, soaring technology costs and operational expenses (including SG&A and R&D costs) to develop advanced vehicles are likely to have dented margins during the quarter-to-be-reported.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>