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.
Will Lucid's (LCID) Q4 Earnings Upset Investors Once Again?
Read MoreHide Full Article
Lucid Group (LCID - Free Report) is scheduled to release fourth-quarter 2021 results on Feb 28, after the bell. The Zacks Consensus Estimate is pegged at a loss of 26 cents per share for the quarter. The consensus mark for Lucid’s fourth-quarter loss per share has been unchanged in the past 90 days.
This electric vehicle company — which made its NASDAQ debut on Jul 26, 2021 — incurred a net loss per share of 41 cents in the last reported quarter. The loss was wider than the Zacks Consensus Estimate of 22 cents per share.
Earnings Whispers
Our proven Zacks model doesn’t does not conclusively predict an earnings beat for Lucid this time around as well. 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. That is not the case here.
Earnings ESP: Lucid has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is on par 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: LCID currently carries a Zacks Rank of 4 (Sell).
Customer vehicle production of the company’s first car — Lucid Air — began in the third quarter at the Advanced Manufacturing Plant in Casa Grande and deliveries of the same began on Oct 30. Customer reservations rose to 17,000 as of Nov 15. While this bodes well for the upcoming results, high operating expenses incurred by Lucid are likely to have played a spoilsport.
With the company still being in the nascent stage, high technology and product development expenses are likely to have dented margins. Continued spending in capacity expansion of the manufacturing facility in Arizona coupled with the opening of new retail and service locations have been escalating operating costs. In the last reported quarter, research & development and selling, general & administrative costs flared up 81% and 800.5%, respectively, from the year-ago levels. Such elevated spending is likely to have continued, thereby denting margins.
Investment in property and equipment associated with Phase 2 expansion of production, expansion of retail, delivery, and service capacities along with continued investment in vehicle program development are likely to have marred cash flows in the quarter-to-be-reported. Net cash used in operating activities totaled $291 million for third-quarter 2021, up 72.3% year over year. High capex and operating expenses, especially when LCID is not generating any meaningful revenues, may have impacted fourth-quarter bottom line and cash flows.
Tesla has an expected earnings growth rate of 40.7% for the current year. The Zacks Consensus Estimate for earnings for the current year has been revised around 22.3% upward in the past 60 days.
Tesla’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. It pulled off a trailing four-quarter earnings surprise of 33.3%, on average.
Harley-Davidson has an expected earnings growth rate of 1.9% for the current year. The Zacks Consensus Estimate for earnings for the current year has been revised around 21.7% upward in the past 60 days.
Harley-Davidson’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. HOG pulled off a trailing four-quarter earnings surprise of 77.59%, on average.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Will Lucid's (LCID) Q4 Earnings Upset Investors Once Again?
Lucid Group (LCID - Free Report) is scheduled to release fourth-quarter 2021 results on Feb 28, after the bell. The Zacks Consensus Estimate is pegged at a loss of 26 cents per share for the quarter. The consensus mark for Lucid’s fourth-quarter loss per share has been unchanged in the past 90 days.
This electric vehicle company — which made its NASDAQ debut on Jul 26, 2021 — incurred a net loss per share of 41 cents in the last reported quarter. The loss was wider than the Zacks Consensus Estimate of 22 cents per share.
Earnings Whispers
Our proven Zacks model doesn’t does not conclusively predict an earnings beat for Lucid this time around as well. 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. That is not the case here.
Earnings ESP: Lucid has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is on par 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: LCID currently carries a Zacks Rank of 4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Things to Consider
Customer vehicle production of the company’s first car — Lucid Air — began in the third quarter at the Advanced Manufacturing Plant in Casa Grande and deliveries of the same began on Oct 30. Customer reservations rose to 17,000 as of Nov 15. While this bodes well for the upcoming results, high operating expenses incurred by Lucid are likely to have played a spoilsport.
With the company still being in the nascent stage, high technology and product development expenses are likely to have dented margins. Continued spending in capacity expansion of the manufacturing facility in Arizona coupled with the opening of new retail and service locations have been escalating operating costs. In the last reported quarter, research & development and selling, general & administrative costs flared up 81% and 800.5%, respectively, from the year-ago levels. Such elevated spending is likely to have continued, thereby denting margins.
Investment in property and equipment associated with Phase 2 expansion of production, expansion of retail, delivery, and service capacities along with continued investment in vehicle program development are likely to have marred cash flows in the quarter-to-be-reported. Net cash used in operating activities totaled $291 million for third-quarter 2021, up 72.3% year over year. High capex and operating expenses, especially when LCID is not generating any meaningful revenues, may have impacted fourth-quarter bottom line and cash flows.
2 Top-Ranked Auto Stocks Worth a Look
If you are interested to invest in the auto space, Tesla (TSLA - Free Report) and Harley-Davidson (HOG - Free Report) could be good choices. Both carry a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Tesla has an expected earnings growth rate of 40.7% for the current year. The Zacks Consensus Estimate for earnings for the current year has been revised around 22.3% upward in the past 60 days.
Tesla’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. It pulled off a trailing four-quarter earnings surprise of 33.3%, on average.
Harley-Davidson has an expected earnings growth rate of 1.9% for the current year. The Zacks Consensus Estimate for earnings for the current year has been revised around 21.7% upward in the past 60 days.
Harley-Davidson’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. HOG pulled off a trailing four-quarter earnings surprise of 77.59%, on average.