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Tesla (TSLA) Earnings Beat Estimates in Q2, Revenues Up Y/Y
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Tesla (TSLA - Free Report) reported second-quarter 2022 earnings of $2.27 a share, up from the year-ago figure of $1.45 and surpassing the Zacks Consensus Estimate of $1.82. This marked the sixth straight earnings beat for the company. Higher-than-expected revenues from Services and Other segment resulted in this outperformance.
Total revenues came in at $16,934 million, witnessing year-over-year growth of 41.6%. However, the top line lagged the consensus mark of $17,101 million. The EV giant reported an overall gross margin of 25% for the reported quarter. Further, operating margin came in at 14.6%.
Key Takeaways
Tesla’s production and delivery totaled 258,580 and 254,695 vehicles, reflecting a year-over-year jump of 25% and 27%, respectively. The delivery figure lagged the consensus mark of 303,532 vehicles. The Model 3/Y registered production and deliveries of 242,169 and 238,533 vehicles, marking year-over-year growth of 19% and 20%, respectively. Production and delivery of the Model S/X totaled 16,411 and 16,162 units, respectively, in the quarter under review.
Total automotive revenues of $14,602 million missed the consensus mark of $16,398 million but jumped 43% year over year. The figure also included $344 million from the sale of regulatory credits for electric vehicles, which fell 3% year over year. Automotive gross profit came in at $4,081 million, which missed the consensus mark of $4,216 million. Automotive gross margin came in at 27.9%, contracting 46 basis points from second-quarter 2021.
Energy generation and storage revenues came in at $866 million in second-quarter 2022 compared with the year-ago quarter’s figure of $801 million. The figure lagged the consensus mark of $893 million. Services and Other revenues were $1,466 million, significantly increasing from $951 million a year ago. The figure also topped the consensus mark of $1,186 million.
Operating expenses totaled $1,770 million in the reported quarter, flaring up from $1,572 million incurred in the corresponding period of 2021.
Financials
Tesla had cash and cash equivalents of $18,324 million as of Jun 30, 2022, compared with $16,229 million on Jun 30, 2021. Net cash provided by operating activities amounted to $2,351 million in second-quarter 2022, up 11% year over year. Its capital expenditure totaled $1,730 million, up from $1,505 million recorded in second-quarter 2021.
Tesla generated free cash flow of $621 million during the reported quarter, almost flat year over year. Long-term debt and finance leases, net of current portion, totaled $2,898 million, down from $3,153 million on Mar 31, 2022.
BRP Group has an expected earnings growth rate of 11.4% for the current year. The Zacks Consensus Estimate for current-year earnings has been kept constant in the past 30 days.
BRP Group’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. DOOO pulled off a trailing four-quarter earnings surprise of 56.81%, on average. The stock has declined 12.8% over the past year.
American Axle has an expected earnings growth rate of 93.9% for 2023. The Zacks Consensus Estimate for current-year earnings has been revised 1.2% in the past 30 days.
American Axle’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. AXL pulled off a trailing four-quarter earnings surprise of 847.92%, on average. The stock has declined 8.8% in the past year.
Standard Motor has an expected earnings growth rate of 5.2% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.
Standard Motor’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. SMP pulled off a trailing four-quarter earnings surprise of 40.34%, on average. The stock has risen 11.6% over the past year.
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Tesla (TSLA) Earnings Beat Estimates in Q2, Revenues Up Y/Y
Tesla (TSLA - Free Report) reported second-quarter 2022 earnings of $2.27 a share, up from the year-ago figure of $1.45 and surpassing the Zacks Consensus Estimate of $1.82. This marked the sixth straight earnings beat for the company. Higher-than-expected revenues from Services and Other segment resulted in this outperformance.
Total revenues came in at $16,934 million, witnessing year-over-year growth of 41.6%. However, the top line lagged the consensus mark of $17,101 million. The EV giant reported an overall gross margin of 25% for the reported quarter. Further, operating margin came in at 14.6%.
Key Takeaways
Tesla’s production and delivery totaled 258,580 and 254,695 vehicles, reflecting a year-over-year jump of 25% and 27%, respectively. The delivery figure lagged the consensus mark of 303,532 vehicles. The Model 3/Y registered production and deliveries of 242,169 and 238,533 vehicles, marking year-over-year growth of 19% and 20%, respectively. Production and delivery of the Model S/X totaled 16,411 and 16,162 units, respectively, in the quarter under review.
Total automotive revenues of $14,602 million missed the consensus mark of $16,398 million but jumped 43% year over year. The figure also included $344 million from the sale of regulatory credits for electric vehicles, which fell 3% year over year. Automotive gross profit came in at $4,081 million, which missed the consensus mark of $4,216 million. Automotive gross margin came in at 27.9%, contracting 46 basis points from second-quarter 2021.
Energy generation and storage revenues came in at $866 million in second-quarter 2022 compared with the year-ago quarter’s figure of $801 million. The figure lagged the consensus mark of $893 million. Services and Other revenues were $1,466 million, significantly increasing from $951 million a year ago. The figure also topped the consensus mark of $1,186 million.
Operating expenses totaled $1,770 million in the reported quarter, flaring up from $1,572 million incurred in the corresponding period of 2021.
Financials
Tesla had cash and cash equivalents of $18,324 million as of Jun 30, 2022, compared with $16,229 million on Jun 30, 2021. Net cash provided by operating activities amounted to $2,351 million in second-quarter 2022, up 11% year over year. Its capital expenditure totaled $1,730 million, up from $1,505 million recorded in second-quarter 2021.
Tesla generated free cash flow of $621 million during the reported quarter, almost flat year over year. Long-term debt and finance leases, net of current portion, totaled $2,898 million, down from $3,153 million on Mar 31, 2022.
Zacks Rank & Other Key Picks
TSLA carries a Zacks Rank #2 (Buy), currently.
Other top-ranked players in the auto space include BRP Group, Inc. (DOOO - Free Report) , American Axle & Manufacturing Holdings (AXL - Free Report) and Standard Motor Products (SMP - Free Report) , each carrying a Zacks Rank #2, currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BRP Group has an expected earnings growth rate of 11.4% for the current year. The Zacks Consensus Estimate for current-year earnings has been kept constant in the past 30 days.
BRP Group’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. DOOO pulled off a trailing four-quarter earnings surprise of 56.81%, on average. The stock has declined 12.8% over the past year.
American Axle has an expected earnings growth rate of 93.9% for 2023. The Zacks Consensus Estimate for current-year earnings has been revised 1.2% in the past 30 days.
American Axle’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. AXL pulled off a trailing four-quarter earnings surprise of 847.92%, on average. The stock has declined 8.8% in the past year.
Standard Motor has an expected earnings growth rate of 5.2% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.
Standard Motor’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. SMP pulled off a trailing four-quarter earnings surprise of 40.34%, on average. The stock has risen 11.6% over the past year.