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What's in the Cards for Rivian (RIVN) This Earnings Season?

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Rivian Automotive (RIVN - Free Report) is scheduled to report second-quarter 2022 results on Aug 11, after the closing bell. The Zacks Consensus Estimate for the quarter’s loss and revenues is pegged at $1.67 per share and $337.7 million, respectively. The consensus mark for Rivian’s second-quarter loss per share has remained stable over the past 60 days.

The electric vehicle (EV) start-up went public in November 2021. This will be the fourth time that the company will unveil quarterly results after making its Nasdaq debut. Over the trailing three quarters, RIVN surpassed earnings estimates twice and missed on the other, the average negative surprise being 4.52%. In the last reported quarter, Rivian incurred a loss per share of $1.43, narrower than the Zacks Consensus Estimate of a loss of $1.50. Total revenues came in at $95 million, missing the consensus mark of $114 million. 

Rivian Automotive, Inc. Price, Consensus and EPS Surprise

Rivian Automotive, Inc. Price, Consensus and EPS Surprise

Rivian Automotive, Inc. price-consensus-eps-surprise-chart | Rivian Automotive, Inc. Quote

What Does Our Model Say?

Our proven model conclusively predicts 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 the case here.

Earnings ESP: Rivian has an Earnings ESP of +9.58%. This is because the Most Accurate Estimate of loss is pegged 16 cents narrower 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.

Factors Likely to Shape Q2 Results

During the April-June period, the EV maker produced 4,401 vehicles at its factory in Normal, IL and delivered 4,467 units during the same time frame. Production and sales surged 72.3% and 264%, respectively, from the first-quarter 2022 levels. Rising sales of battery-powered vehicles amid heightening climate concerns are expected to buoy Rivian’s second-quarter 2022 results. 

On the flip side, RIVN — being in the nascent stage of development — has been burning cash. In the last reported quarter, Rivian’s operating expenses in the first quarter of 2022 totaled $1,077 million, up from $410 million incurred in the comparable year-ago period. Massive operating costs in the second 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. Additionally, rising commodity costs are also expected to weigh on the results.

Peer Releases

Lucid Group (LCID - Free Report) incurred second-quarter 2022 adjusted loss of 33 cents a share, narrower than the Zacks Consensus Estimate of a loss of 44 cents. For second-quarter 2022, the company registered revenues of around $97 million. Total costs and expenses totaled $656.5 million, up from 249 million in the year-ago quarter. LCID incurred $309.8 million in capital expenditure.

Lucid exited the quarter with cash and cash equivalents of $3.1 billion. The company delivered 679 Lucid Air cars in the first quarter. As of Aug 3, it had taken over 37,000 customer reservations, reflecting potential sales of more than $3.5 billion. LCID envisions 2022 production of Lucid Air in the band of 6,000-7,000 units.

Nikola Corp (NKLA - Free Report) incurred second-quarter 2022 adjusted loss of 25 cents a share, narrower than the Zacks Consensus Estimate of a loss of 27 cents. NKLA generated $18 million in revenues in the quarter under review, ahead of the consensus mark of $17 million. In second-quarter 2022, the company spent a total of $172.2 million on R&D and SG&A activities.

NKLA had cash and cash equivalents of $441.7 million as of Jun 30, 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.

In-Depth Zacks Research for the Tickers Above

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