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What's in Store for QuantumScape (QS) This Earnings Season?

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QuantumScape Corporation (QS - Free Report) is slated to release first-quarter 2021 results on May 11, after the closing bell. The Zacks Consensus Estimate is pegged at a loss of 6 cents per share for the quarter.

In the last reported quarter, this solid-state battery maker reported net loss per share of $2.41, wider than the loss of 6 cents incurred in the prior year-quarter.

The Zacks Consensus Estimate for QuantumScape’s first-quarter loss per share has remained unchanged over the past 90 days.

Earnings Whispers

Our proven model does not predict an earnings beat for QuantumScape for the to-be-reported quarter, as it does not 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: QuantumScape has an Earnings ESP of 0.00%.

Zacks Rank: It carries a Zacks Rank of 3 currently.

Key Factors

QuantumScape, a leader in the development of solid-state lithium-metal batteries for use in electric vehicles (EVs), is another recent SPAC IPO in the EV space. The fourth quarter of 2020 was a historic season for the company, during which it completed its business combination with Kensington Capital Acquisition and began trading on the NYSE on Nov 27.

QuantumScape’s next-generation cutting-edge batteries are revolutionising the EV space. Leveraging lithium-metal technology, the company hopes to achieve ranges of 300 miles or more, hyper-fast charging (less than 15 minutes), cheap vehicles (less than $30k), and extended battery life (more than 150,000 miles), thus accelerating the race to mass EV adoption. The use of this game-changing technology is likely to have positively impacted the company’s first-quarter performance.

During the quarter under review, QuantumScape secured an additional investment of $100 million by its primary shareholder, Volkswagen AG (VWAGY - Free Report) , which is likely to have boosted the Bill Gates-backed EV battery supplier’s prospects.

However, QuantumScape — which shares space with battery makers including Panasonic and EnerSys (ENS - Free Report) — is still in its nascent stage and does not expect to generate revenues until 2024 and will not be able to drive positive free-cash-flows until 2028. Also, in 2021, the company plans to spend between $230 million and $290 million combined in operating expenses and capex to support its multi-layer cell development. This is expected to have further dented the company’s margins during the to-be-reported quarter.

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