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Will Rivian (RIVN) Pull Off a Beat This Earnings Season?
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Rivian Automotive, Inc. (RIVN - Free Report) is slated to release third-quarter 2022 results on Nov 09, after the market closes. The Zacks Consensus Estimate for the to-be-reported quarter’s loss per share and revenues is pegged at $1.78 and $513.89 million, respectively.
For the third quarter, the consensus estimate for RIVN’s loss per share has remained constant in the past 60 days. Its bottom-line estimates imply a rise of 76.8% from the year-ago reported number. The Zacks Consensus Estimate for its quarterly revenues suggests a year-over-year increase of more than $500 million. Over the trailing four quarters, RIVN surpassed earnings estimates in two of the trailing four quarters and missed in the rest, with the average surprise being a negative 6.68%. This is depicted in the graph below:
In second-quarter 2022, RIVN’s adjusted loss per share of $1.89 was wider than the consensus metric of a loss of $1.67. The bottom line narrowed 67% year over year from a loss of $5.74 a share. The company reported net sales of $364 million, which beat the Zacks Consensus Estimate of $338 million.
Earnings Whispers
Our proven model predicts an earnings beat for the EV maker for the quarter to be reported, as it 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.
Earnings ESP: RIVN has an Earnings ESP of +0.47%. This is because the Most Accurate Estimate for loss is wider than the Zacks Consensus Estimate by 1 cent.
Zacks Rank: It currently carries a Zacks Rank of 3.
In the third quarter, Rivian officially began deliveries of its much-awaited electric delivery vehicle (EDV) in partnership with Amazon. The vehicle provides advantages over its ICE-powered counterparts and allows a comprehensive fleet management system, and these have garnered the EDV ample attention. The noteworthy development is likely to have boosted the firm’s prospects in the quarter.
Rivian’s commercial segment is poised to benefit from the recently enacted Inflation Reduction Act, which offers incentives for buying electric vehicles. This has likely increased sales for the novice EV maker in the third quarter. Encouragingly, in the last reported quarter, RIVN reaffirmed its target to produce 25,000 vehicles this year.
Despite being a newbie to the domain, Rivian is determined to build a robust charging framework of its own instead of relying on third-party chargers. In this light, the company’s rapidly developing fast-charging network, focused on providing a holistic charging strategy, is winning over car owners. This is anticipated to have aided its quarterly performance.
Yet, Rivian is facing the brunt of soaring inflation that has affected its profits and is likely to have hurt the same in the third quarter. Although the carmaker expects supply bottlenecks to ease out to an extent in the second half of the year, these are likely to have dented margins.
Peer Releases
Here’s a snapshot of some recent earnings releases of some EV makers.
EV magnate Tesla Inc. (TSLA - Free Report) reported third-quarter earnings on Oct 19 and delivered its 7th consecutive beat. Its earnings of $1.05 a share, up from the year-ago figure of 62 cents, surpassed the Zacks Consensus Estimate of 95 cents. Total revenues came in at $21,454 million, witnessing year-over-year growth of 56%. However, the top line lagged the consensus mark of $22,323 million.
Nikola (NKLA - Free Report) reported third-quarter earnings on Nov 3. Its adjusted loss per share of 28 cents was narrower than the Zacks Consensus Estimate of a loss of 56 cents but wider than the year-ago loss figure of 22 cents. It recorded revenues of $24.2 million that crossed the consensus figure of $23 million.
Fisker Inc. reported third-quarter earnings on Nov 3. Its net loss per share of 49 cents was wider than the Zacks Consensus Estimate of a loss of 43 cents and the year-ago loss figure of 37 cents. It recorded revenues of $14,000, decreasing from the year-ago figure of $15,000.
Image: Bigstock
Will Rivian (RIVN) Pull Off a Beat This Earnings Season?
Rivian Automotive, Inc. (RIVN - Free Report) is slated to release third-quarter 2022 results on Nov 09, after the market closes. The Zacks Consensus Estimate for the to-be-reported quarter’s loss per share and revenues is pegged at $1.78 and $513.89 million, respectively.
For the third quarter, the consensus estimate for RIVN’s loss per share has remained constant in the past 60 days. Its bottom-line estimates imply a rise of 76.8% from the year-ago reported number. The Zacks Consensus Estimate for its quarterly revenues suggests a year-over-year increase of more than $500 million. Over the trailing four quarters, RIVN surpassed earnings estimates in two of the trailing four quarters and missed in the rest, with the average surprise being a negative 6.68%. This is depicted in the graph below:
Rivian Automotive, Inc. Price and EPS Surprise
Rivian Automotive, Inc. price-eps-surprise | Rivian Automotive, Inc. Quote
Q2 Highlights
In second-quarter 2022, RIVN’s adjusted loss per share of $1.89 was wider than the consensus metric of a loss of $1.67. The bottom line narrowed 67% year over year from a loss of $5.74 a share. The company reported net sales of $364 million, which beat the Zacks Consensus Estimate of $338 million.
Earnings Whispers
Our proven model predicts an earnings beat for the EV maker for the quarter to be reported, as it 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.
Earnings ESP: RIVN has an Earnings ESP of +0.47%. This is because the Most Accurate Estimate for loss is wider than the Zacks Consensus Estimate by 1 cent.
Zacks Rank: It currently carries a Zacks Rank of 3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors at Play
In the third quarter, Rivian officially began deliveries of its much-awaited electric delivery vehicle (EDV) in partnership with Amazon. The vehicle provides advantages over its ICE-powered counterparts and allows a comprehensive fleet management system, and these have garnered the EDV ample attention. The noteworthy development is likely to have boosted the firm’s prospects in the quarter.
Rivian’s commercial segment is poised to benefit from the recently enacted Inflation Reduction Act, which offers incentives for buying electric vehicles. This has likely increased sales for the novice EV maker in the third quarter. Encouragingly, in the last reported quarter, RIVN reaffirmed its target to produce 25,000 vehicles this year.
Despite being a newbie to the domain, Rivian is determined to build a robust charging framework of its own instead of relying on third-party chargers. In this light, the company’s rapidly developing fast-charging network, focused on providing a holistic charging strategy, is winning over car owners. This is anticipated to have aided its quarterly performance.
Yet, Rivian is facing the brunt of soaring inflation that has affected its profits and is likely to have hurt the same in the third quarter. Although the carmaker expects supply bottlenecks to ease out to an extent in the second half of the year, these are likely to have dented margins.
Peer Releases
Here’s a snapshot of some recent earnings releases of some EV makers.
EV magnate Tesla Inc. (TSLA - Free Report) reported third-quarter earnings on Oct 19 and delivered its 7th consecutive beat. Its earnings of $1.05 a share, up from the year-ago figure of 62 cents, surpassed the Zacks Consensus Estimate of 95 cents. Total revenues came in at $21,454 million, witnessing year-over-year growth of 56%. However, the top line lagged the consensus mark of $22,323 million.
Nikola (NKLA - Free Report) reported third-quarter earnings on Nov 3. Its adjusted loss per share of 28 cents was narrower than the Zacks Consensus Estimate of a loss of 56 cents but wider than the year-ago loss figure of 22 cents. It recorded revenues of $24.2 million that crossed the consensus figure of $23 million.
Fisker Inc. reported third-quarter earnings on Nov 3. Its net loss per share of 49 cents was wider than the Zacks Consensus Estimate of a loss of 43 cents and the year-ago loss figure of 37 cents. It recorded revenues of $14,000, decreasing from the year-ago figure of $15,000.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.