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QuantumScape (QS) Q4 Earnings to Suffer From Cost Pressure
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QuantumScape Corporation (QS - Free Report) is slated to release fourth-quarter 2022 results on Feb 15, after the closing bell. The Zacks Consensus Estimate is pegged at a loss of 26 cents per share for the quarter. This implies a year-over-year deterioration of 62.5%.
The estimate for fourth-quarter 2022 loss per share has remained stable over the past 90 days. In the last reported quarter, this solid-state battery maker reported a net loss per share of 27 cents, wider than the Zacks Consensus Estimate of 23 cents. Over the trailing three quarters, the company missed the bottom-line estimates twice and matched on the other occasion, with the average negative surprise being 13.6%.
QuantumScape’s next-generation cutting-edge batteries have been revolutionizing the electric vehicle (EV) space. Leveraging lithium-metal technology, QS’ batteries charge up a vehicle to 80% of its full capacity in around 15 minutes. The company aims to achieve ranges of 300 miles or more, hyper-fast charging (less than 15 minutes), cheap vehicles (less than $30k), and extended battery life (more than 150,000 miles), thus accelerating the race to mass EV adoption. The use of this game-changing technology bodes well for the upcoming results, given the soaring demand for green vehicles.
On the flip side, the company is likely to have faced several headwinds, including delays in negotiations with original equipment manufacturers and suppliers, supply chain snarls and COVID-19 disruptions during the quarter to-to be-reported. Stiff competition, inflationary pressure and regulatory developments may have also played spoilsport.
Further, escalating expenses remain a major challenge for this pre-revenue company. In its last quarterly release, the company’s operational expenses (comprising G&A and R&D costs) totaled $120.6 million, jumping from $53.8 million in the corresponding quarter of 2021. Given the fact that QS is still in the nascent stage, operating expenses are likely to have been on the rise, resulting in losses. As the firm is not likely to generate revenues until 2024, it is expected to report a dismal quarterly show owing to escalating operating costs and capex.
Earnings Whispers
Our proven model doesn’t conclusively predict an earnings beat for QuantumScape for the to-be-reported quarter as it does not have the right combination of the two key ingredients. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: QuantumScape has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate of loss is in line with the Zacks Consensus Estimate.
Zacks Rank: It carries a Zacks Rank of 4 (Sell) currently.
While an earnings beat looks uncertain for QuantumScape, let’s take a look at some players from the auto space that, according to our model, have the right combination of elements to post an earnings beat for the quarter to be reported:
Allison Transmission Holdings (ALSN - Free Report) will release fourth-quarter 2022 results on Feb 15. The company has an Earnings ESP of +3.06% and a Zacks Rank #3.
The Zacks Consensus Estimate for Allison’s to-be-reported quarter’s earnings and revenues is pegged at $1.21 per share and $676 million, respectively. ALSN surpassed earnings estimates in three of the trailing four quarters and missed in one quarter, with an average surprise of 10.27%.
LKQ (LKQ - Free Report) will release fourth-quarter 2022 results on Feb 23. The company has an Earnings ESP of +3.78% and a Zacks Rank #3.
The Zacks Consensus Estimate for LKQ’s to-be-reported quarter’s earnings and revenues is pegged at 84 cents per share and $3.01 billion, respectively. LKQ surpassed earnings estimates in all the trailing four quarters, with an average surprise of 7.96%.
Rivian Automotive (RIVN - Free Report) will release fourth-quarter 2022 results on Feb 28. The company has an Earnings ESP of +2.93% and a Zacks Rank #3.
The Zacks Consensus Estimate for Rivian’s to-be-reported quarter’s loss per share and revenues is pegged at $1.88 per share and $711 million, respectively. RIVN surpassed earnings estimates in two of the trailing four quarters and missed in the rest, with the average negative surprise being 12.63%.
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QuantumScape (QS) Q4 Earnings to Suffer From Cost Pressure
QuantumScape Corporation (QS - Free Report) is slated to release fourth-quarter 2022 results on Feb 15, after the closing bell. The Zacks Consensus Estimate is pegged at a loss of 26 cents per share for the quarter. This implies a year-over-year deterioration of 62.5%.
The estimate for fourth-quarter 2022 loss per share has remained stable over the past 90 days. In the last reported quarter, this solid-state battery maker reported a net loss per share of 27 cents, wider than the Zacks Consensus Estimate of 23 cents. Over the trailing three quarters, the company missed the bottom-line estimates twice and matched on the other occasion, with the average negative surprise being 13.6%.
QuantumScape Corporation Price and EPS Surprise
QuantumScape Corporation price-eps-surprise | QuantumScape Corporation Quote
Key Factors Likely to Shape Quarterly Results
QuantumScape’s next-generation cutting-edge batteries have been revolutionizing the electric vehicle (EV) space. Leveraging lithium-metal technology, QS’ batteries charge up a vehicle to 80% of its full capacity in around 15 minutes. The company aims to achieve ranges of 300 miles or more, hyper-fast charging (less than 15 minutes), cheap vehicles (less than $30k), and extended battery life (more than 150,000 miles), thus accelerating the race to mass EV adoption. The use of this game-changing technology bodes well for the upcoming results, given the soaring demand for green vehicles.
On the flip side, the company is likely to have faced several headwinds, including delays in negotiations with original equipment manufacturers and suppliers, supply chain snarls and COVID-19 disruptions during the quarter to-to be-reported. Stiff competition, inflationary pressure and regulatory developments may have also played spoilsport.
Further, escalating expenses remain a major challenge for this pre-revenue company. In its last quarterly release, the company’s operational expenses (comprising G&A and R&D costs) totaled $120.6 million, jumping from $53.8 million in the corresponding quarter of 2021. Given the fact that QS is still in the nascent stage, operating expenses are likely to have been on the rise, resulting in losses. As the firm is not likely to generate revenues until 2024, it is expected to report a dismal quarterly show owing to escalating operating costs and capex.
Earnings Whispers
Our proven model doesn’t conclusively predict an earnings beat for QuantumScape for the to-be-reported quarter as it does not have the right combination of the two key ingredients. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: QuantumScape has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate of loss is in line with the Zacks Consensus Estimate.
Zacks Rank: It carries a Zacks Rank of 4 (Sell) currently.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With the Favorable Combination
While an earnings beat looks uncertain for QuantumScape, let’s take a look at some players from the auto space that, according to our model, have the right combination of elements to post an earnings beat for the quarter to be reported:
Allison Transmission Holdings (ALSN - Free Report) will release fourth-quarter 2022 results on Feb 15. The company has an Earnings ESP of +3.06% and a Zacks Rank #3.
The Zacks Consensus Estimate for Allison’s to-be-reported quarter’s earnings and revenues is pegged at $1.21 per share and $676 million, respectively. ALSN surpassed earnings estimates in three of the trailing four quarters and missed in one quarter, with an average surprise of 10.27%.
LKQ (LKQ - Free Report) will release fourth-quarter 2022 results on Feb 23. The company has an Earnings ESP of +3.78% and a Zacks Rank #3.
The Zacks Consensus Estimate for LKQ’s to-be-reported quarter’s earnings and revenues is pegged at 84 cents per share and $3.01 billion, respectively. LKQ surpassed earnings estimates in all the trailing four quarters, with an average surprise of 7.96%.
Rivian Automotive (RIVN - Free Report) will release fourth-quarter 2022 results on Feb 28. The company has an Earnings ESP of +2.93% and a Zacks Rank #3.
The Zacks Consensus Estimate for Rivian’s to-be-reported quarter’s loss per share and revenues is pegged at $1.88 per share and $711 million, respectively. RIVN surpassed earnings estimates in two of the trailing four quarters and missed in the rest, with the average negative surprise being 12.63%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.