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What's in Store for Lordstown (RIDE) This Earnings Season?
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Lordstown Motors Corporation is slated to release first-quarter 2021 results on May 17, before market open. This will be the second time that the Ohio-based electric truck maker would release quarterly numbers as a public company, post its NASDAQ debut on Oct 26, 2020, upon completion of the reverse merger with DiamondPeak Holdings Corp.
The Zacks Consensus Estimate is pegged at a loss of 25 cents per share for the quarter.
In the last reported quarter, the company posted net loss per share of 23 cents, wider than the loss of 10 cents incurred in the prior-year period.
The Zacks Consensus Estimate for Lordstown’s first-quarter loss per share has widened two cents over the past 60 days.
Earnings Whispers
Our proven model does not predict an earnings beat for Lordstown 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: Lordstown has an Earnings ESP of 0.00%.
Zacks Rank: It carries a Zacks Rank of 4 (Sell) currently.
Key Factors
Lordstown, a leader in electric light duty trucks focusing on the commercial fleet market, is another recent SPAC IPO in the electric vehicle space.
Boasting 600 horsepower and a range exceeding 250 miles on a single recharge, Lordstown Endurance is one of the most anticipated electric pick-ups of 2021. Deliveries are expected to commence this September and production is likely to ramp up throughout 2022. Lordstown Moto has also signed a multi-year supplier agreement with LG Energy Solution to secure a long-term, high-quality battery cell supply chain for the Endurance. This instills optimism regarding the company’s future and is anticipated to have benefited the company’s quarterly performance.
In January, Lordstown claimed to have secured more than 100,000 preorders for its Endurance. However, in March, Hindenburg Research issued a report accusing Lordstown of misleading investors about the demand for its upcoming electric pick-up truck. Per Hindenburg's report, the number of preorders was greatly exaggerated, and that Lordstown might have paid consultants to generate fictitious preorders.
This was followed by the Lordstown’s CEO Steve Burns’ acknowledgment that the Securities and Exchange Commission (SEC) had commenced an investigation on the company with regards to the allegations made by Hindenburg. Burns later admitted that Lordstown had paid consultants to generate preorders that were understood to be non-binding. The series of abovementioned unfortunate events is likely to have dented the company’s first-quarter performance. Evidently, shares of the company have plunged more than 51% since then.
Moreover, Lordstownis still in its nascent stage with no sellable product as of now, and is yet to begin commercial production and might face hindrances as it ramps up. Additionally, Lordstown is entering a highly competitive genre of the EV market, with electric pick-up trucks coming from big names like Tesla (TSLA - Free Report) , Daimler AG and Ford (F - Free Report) among others. Given the company’s lack of a mass manufacturing track record, there is a lot of ambiguity that surrounds its future. This is expected to have adversely impacted the company’s quarterly performance.
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What's in Store for Lordstown (RIDE) This Earnings Season?
Lordstown Motors Corporation is slated to release first-quarter 2021 results on May 17, before market open. This will be the second time that the Ohio-based electric truck maker would release quarterly numbers as a public company, post its NASDAQ debut on Oct 26, 2020, upon completion of the reverse merger with DiamondPeak Holdings Corp.
The Zacks Consensus Estimate is pegged at a loss of 25 cents per share for the quarter.
In the last reported quarter, the company posted net loss per share of 23 cents, wider than the loss of 10 cents incurred in the prior-year period.
The Zacks Consensus Estimate for Lordstown’s first-quarter loss per share has widened two cents over the past 60 days.
Earnings Whispers
Our proven model does not predict an earnings beat for Lordstown 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: Lordstown has an Earnings ESP of 0.00%.
Zacks Rank: It carries a Zacks Rank of 4 (Sell) currently.
Key Factors
Lordstown, a leader in electric light duty trucks focusing on the commercial fleet market, is another recent SPAC IPO in the electric vehicle space.
Boasting 600 horsepower and a range exceeding 250 miles on a single recharge, Lordstown Endurance is one of the most anticipated electric pick-ups of 2021. Deliveries are expected to commence this September and production is likely to ramp up throughout 2022. Lordstown Moto has also signed a multi-year supplier agreement with LG Energy Solution to secure a long-term, high-quality battery cell supply chain for the Endurance. This instills optimism regarding the company’s future and is anticipated to have benefited the company’s quarterly performance.
In January, Lordstown claimed to have secured more than 100,000 preorders for its Endurance. However, in March, Hindenburg Research issued a report accusing Lordstown of misleading investors about the demand for its upcoming electric pick-up truck. Per Hindenburg's report, the number of preorders was greatly exaggerated, and that Lordstown might have paid consultants to generate fictitious preorders.
This was followed by the Lordstown’s CEO Steve Burns’ acknowledgment that the Securities and Exchange Commission (SEC) had commenced an investigation on the company with regards to the allegations made by Hindenburg. Burns later admitted that Lordstown had paid consultants to generate preorders that were understood to be non-binding. The series of abovementioned unfortunate events is likely to have dented the company’s first-quarter performance. Evidently, shares of the company have plunged more than 51% since then.
Moreover, Lordstownis still in its nascent stage with no sellable product as of now, and is yet to begin commercial production and might face hindrances as it ramps up. Additionally, Lordstown is entering a highly competitive genre of the EV market, with electric pick-up trucks coming from big names like Tesla (TSLA - Free Report) , Daimler AG and Ford (F - Free Report) among others. Given the company’s lack of a mass manufacturing track record, there is a lot of ambiguity that surrounds its future. This is expected to have adversely impacted the company’s quarterly performance.
Zacks' Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.
See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>