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Canoo (GOEV) Gears up for Q1 Earnings: What's in the Offing?

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Canoo Inc. (GOEV - Free Report) is slated to release first-quarter 2021 results on May 17. The electric vehicle (EV) startup made NASDAQ debut on Dec 22, 2020 by merging with a special purpose acquisition company, Hennessy Capital Acquisition. The Zacks Consensus Estimate for first-quarter loss of 23 cents per share has narrowed by 2 cents over the past 30 days.

In the last reported quarter, the company incurred a loss of 66 cents a share, wider than the Zacks Consensus Estimate of loss of 14 cents. Canoo didn’t generate any revenues in the fourth quarter of 2020. The Zacks Consensus Estimate for the same was $3 million.

Earnings Whispers

Our proven model predicts an earnings beat for Canoo 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, which is the case here. 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.

Canoo — whose peers include Nikola (NKLA - Free Report) , ElectraMeccanica (SOLO - Free Report) and Arcimoto (FUV - Free Report) — has an Earnings ESP of +8.70% and a Zacks Rank #3.

Factors to Note

For starters, investors should note that Canoo is still in the nascent stages of development, without any single vehicle officially launched yet. The company is currently not generating any revenues but its proprietary technology platform, and plans of offering subscription services as well as licensing the platform to other EV makers are likely to boost first-quarter 2021 results.

During the March-end quarter, Canoo unveiled its fully-electric pickup truck. It is looking to make its first vehicle available via an all-inclusive subscription fee and is also likely to consider licensing its platform to other original equipment manufacturers. These factors are likely to have sparked optimism regarding the company’s future and are expected to benefit first-quarter results.

Nonetheless, it is likely to have felt the heat from rising operating expenses and high capex to develop these technically advanced vehicles, which may have marred first-quarter 2021 margins. Notably, Canoo expects first-quarter 2021 operating expenses in the band of $45-$50 million and capex of $10-$12 million.

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