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Rivian's (RIVN) Q1 Earnings Coming Up: What's in Store?
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Rivian Automotive (RIVN - Free Report) is scheduled to report first-quarter 2022 results on May 11, after the closing bell. The Zacks Consensus Estimate for the quarter’s loss and revenues is pegged at $1.50 per share and $113.6 million, respectively. The consensus mark for Rivian’s first-quarter loss per share has widened by 6 cents over the past 30 days.
The electric vehicle (EV) start-up went public in November 2021. This will be the third time that the company will unveil quarterly results after making its Nasdaq debut. Over the trailing two quarters, RIVN surpassed earnings estimates once and missed on the other, the average negative surprise being 9.12%. In the last reported quarter, Rivian incurred a loss per share of $2.43, wider than the Zacks Consensus Estimate of a loss of $1.58. Total revenues came in at $54 million, beating the consensus mark of $50 million.
Factors Shaping Q1 Results
In the first quarter of 2022, Rivian produced 2,553 vehicles at its manufacturing facility in Illinois. The company delivered 1,227 vehicles during the first three months of 2022 and believes that it is on track to meet its forecast of selling 25K units this year. But impediments to the supply chain compounded by the Russia-Ukraine war and the resurgence of coronavirus in China would have induced lost sales volumes in the to-be-reported quarter.
Additionally, RIVN — being in the nascent stage of development — has been burning cash. In the last reported quarter, Rivian’s research & development (R&D) costs roughly tripled from the year-ago levels, while selling, general & administrative (SG&A) expenses increased nearly sevenfold from the corresponding quarter of 2020. Operating expenses were $2,071 million, flaring up from $353 million incurred in the comparable year-ago period. Massive operating costs for the first quarter, stemming from advanced product-development activities are likely to have dented margins. Also, high capex to support additional manufacturing capacity and infrastructure is likely to have clipped cash flows. This gets more glaring, especially when the company is not generating meaningful revenues.
The overall results of Rivian are likely to be weighed down by supply chain snarls, manufacturing inefficiencies, and high operating costs and capex requirements.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Rivian 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 not the case here.
Earnings ESP: Rivian has an Earnings ESP of -8.38%. This is because the Most Accurate Estimate of loss is pegged 13 cents wider than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Lucid Group (LCID - Free Report) incurred first-quarter 2022 adjusted loss of 5 cents a share, narrower than the Zacks Consensus Estimate of a loss of 30 cents. The bottom line also compared favorably with fourth-quarter adjusted loss of 37 cents a share. For first-quarter 2022, the company registered revenues of around $58 million. Total costs and expenses totaled $655.2 million, up from 299.1 million in the year-ago quarter. LCID incurred $185 million in capital expenditure.
Lucid exited the quarter with cash and cash equivalents of $5.4 billion. The company delivered 360 Lucid Air cars in the first quarter. As of May 5, it had taken over 30,000 customer reservations, reflecting potential sales of more than $2.9 billion. LCID envisions 2022 production of Lucid Air in the band of 12,000-14,000 units.
Nikola Corp (NKLA - Free Report) incurred first-quarter 2022 adjusted loss of 21 cents a share, narrower than the Zacks Consensus Estimate of a loss of 27 cents. The bottom line also compares favorably with fourth-quarter adjusted loss of 23 cents a share. NKLA generated a mere $2 million revenues in the quarter under review. In first-quarter 2022, the company spent a total of $151 million in R&D and SG&A activities.
NKLA had cash and cash equivalents of $360 million as of Mar 31, 2022. Nikola targets to deliver 300-500 production Tre BEV Trucks this year. It also intends to start the construction of its first hydrogen production hub in Arizona.
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Rivian's (RIVN) Q1 Earnings Coming Up: What's in Store?
Rivian Automotive (RIVN - Free Report) is scheduled to report first-quarter 2022 results on May 11, after the closing bell. The Zacks Consensus Estimate for the quarter’s loss and revenues is pegged at $1.50 per share and $113.6 million, respectively. The consensus mark for Rivian’s first-quarter loss per share has widened by 6 cents over the past 30 days.
The electric vehicle (EV) start-up went public in November 2021. This will be the third time that the company will unveil quarterly results after making its Nasdaq debut. Over the trailing two quarters, RIVN surpassed earnings estimates once and missed on the other, the average negative surprise being 9.12%. In the last reported quarter, Rivian incurred a loss per share of $2.43, wider than the Zacks Consensus Estimate of a loss of $1.58. Total revenues came in at $54 million, beating the consensus mark of $50 million.
Factors Shaping Q1 Results
In the first quarter of 2022, Rivian produced 2,553 vehicles at its manufacturing facility in Illinois. The company delivered 1,227 vehicles during the first three months of 2022 and believes that it is on track to meet its forecast of selling 25K units this year. But impediments to the supply chain compounded by the Russia-Ukraine war and the resurgence of coronavirus in China would have induced lost sales volumes in the to-be-reported quarter.
Additionally, RIVN — being in the nascent stage of development — has been burning cash. In the last reported quarter, Rivian’s research & development (R&D) costs roughly tripled from the year-ago levels, while selling, general & administrative (SG&A) expenses increased nearly sevenfold from the corresponding quarter of 2020. Operating expenses were $2,071 million, flaring up from $353 million incurred in the comparable year-ago period. Massive operating costs for the first quarter, stemming from advanced product-development activities are likely to have dented margins. Also, high capex to support additional manufacturing capacity and infrastructure is likely to have clipped cash flows. This gets more glaring, especially when the company is not generating meaningful revenues.
The overall results of Rivian are likely to be weighed down by supply chain snarls, manufacturing inefficiencies, and high operating costs and capex requirements.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Rivian 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 not the case here.
Earnings ESP: Rivian has an Earnings ESP of -8.38%. This is because the Most Accurate Estimate of loss is pegged 13 cents wider 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: Rivian currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Peer Releases
Lucid Group (LCID - Free Report) incurred first-quarter 2022 adjusted loss of 5 cents a share, narrower than the Zacks Consensus Estimate of a loss of 30 cents. The bottom line also compared favorably with fourth-quarter adjusted loss of 37 cents a share. For first-quarter 2022, the company registered revenues of around $58 million. Total costs and expenses totaled $655.2 million, up from 299.1 million in the year-ago quarter. LCID incurred $185 million in capital expenditure.
Lucid exited the quarter with cash and cash equivalents of $5.4 billion. The company delivered 360 Lucid Air cars in the first quarter. As of May 5, it had taken over 30,000 customer reservations, reflecting potential sales of more than $2.9 billion. LCID envisions 2022 production of Lucid Air in the band of 12,000-14,000 units.
Nikola Corp (NKLA - Free Report) incurred first-quarter 2022 adjusted loss of 21 cents a share, narrower than the Zacks Consensus Estimate of a loss of 27 cents. The bottom line also compares favorably with fourth-quarter adjusted loss of 23 cents a share. NKLA generated a mere $2 million revenues in the quarter under review. In first-quarter 2022, the company spent a total of $151 million in R&D and SG&A activities.
NKLA had cash and cash equivalents of $360 million as of Mar 31, 2022. Nikola targets to deliver 300-500 production Tre BEV Trucks this year. It also intends to start the construction of its first hydrogen production hub in Arizona.