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Factors Shaping the Fate of Workhorse (WKHS) Q1 Earnings
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Workhorse Group, Inc. (WKHS - Free Report) is slated to release first-quarter 2021 results on May 10, before the bell. The Zacks Consensus Estimate for the quarter’s loss and revenues is pegged at 19 cents and $2.38 million respectively. The electric vehicle (EV) maker posted better-than-expected results in the last reported quarter.
The company missed earnings estimates in one of the trailing four quarters, was at par in one and beat in the other two quarters, with the average negative surprise being 40.82%.
Which Way are the Estimates Headed?
The Zacks Consensus Estimate for Workhorse’s first-quarter loss per share has narrowed by a penny over the past 90 days. The year-ago earnings was 6 cents per share, suggesting a year-over-year plunge of 416.7%. Sales of $80,000 were recorded in the corresponding quarter of 2020.
Earnings Whispers
Our proven model predicts an earnings beat for Workhorse 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 has been elaborated below.
Earnings ESP: The company has an Earnings ESP of +13.51%. This is because the Most Accurate Estimate for loss per share is three cents narrower than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
During the quarter under review, Workhorse secured a purchase order for 6,320 C-Series all-electric delivery vehicles from Pride Group Enterprises, a premier Canadian and U.S.-based, privately-held company. This new agreement with Pride marks the company’s largest individual order to date and expands its sales channel internationally into Canada for the first time. This is likely to have benefitted the company’s first-quarter margins.
Moreover, Workhorse’s partnership with Hitachi and Hitachi Capital America to optimize its manufacturing, operational and supply-chain capabilities as well as to set up a national dealer network to complement its sales with vehicle financing options, is likely to have buoyed the company’s top line during the to-be-reported quarter.
Nonetheless, high cost of goods sold due to elevated tooling costs for the C-Series production is expected to have hurt gross profits. Also, this American technology company focused on providing sustainable and cost-effective drone-integrated electric vehicles to the last-mile delivery sector, has been incurring elevated SG&A and R&D costs, which are anticipated to have ailed operating margins.
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Factors Shaping the Fate of Workhorse (WKHS) Q1 Earnings
Workhorse Group, Inc. (WKHS - Free Report) is slated to release first-quarter 2021 results on May 10, before the bell. The Zacks Consensus Estimate for the quarter’s loss and revenues is pegged at 19 cents and $2.38 million respectively. The electric vehicle (EV) maker posted better-than-expected results in the last reported quarter.
The company missed earnings estimates in one of the trailing four quarters, was at par in one and beat in the other two quarters, with the average negative surprise being 40.82%.
Which Way are the Estimates Headed?
The Zacks Consensus Estimate for Workhorse’s first-quarter loss per share has narrowed by a penny over the past 90 days. The year-ago earnings was 6 cents per share, suggesting a year-over-year plunge of 416.7%. Sales of $80,000 were recorded in the corresponding quarter of 2020.
Earnings Whispers
Our proven model predicts an earnings beat for Workhorse 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 has been elaborated below.
Earnings ESP: The company has an Earnings ESP of +13.51%. This is because the Most Accurate Estimate for loss per share is three cents narrower than 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: Workhorse, peers of which include Hyliion Holdings (HYLN - Free Report) , ElectraMeccanica Vehicles Corp. and Nikola (NKLA - Free Report) , carries a Zacks Rank of 3 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors at Play
During the quarter under review, Workhorse secured a purchase order for 6,320 C-Series all-electric delivery vehicles from Pride Group Enterprises, a premier Canadian and U.S.-based, privately-held company. This new agreement with Pride marks the company’s largest individual order to date and expands its sales channel internationally into Canada for the first time. This is likely to have benefitted the company’s first-quarter margins.
Moreover, Workhorse’s partnership with Hitachi and Hitachi Capital America to optimize its manufacturing, operational and supply-chain capabilities as well as to set up a national dealer network to complement its sales with vehicle financing options, is likely to have buoyed the company’s top line during the to-be-reported quarter.
Nonetheless, high cost of goods sold due to elevated tooling costs for the C-Series production is expected to have hurt gross profits. Also, this American technology company focused on providing sustainable and cost-effective drone-integrated electric vehicles to the last-mile delivery sector, has been incurring elevated SG&A and R&D costs, which are anticipated to have ailed operating margins.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>