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High Costs to Mar Rivian (RIVN) Q4 Earnings Despite Sales Growth
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Rivian Automotive, Inc. (RIVN - Free Report) is slated to release fourth-quarter 2022 results on Feb 28, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s loss per share and revenues is pegged at $1.89 and $714 million, respectively.
For the fourth quarter, the consensus estimate for RIVN’s loss per share has widened by a cent in the past seven days. Its bottom-line estimates imply an improvement of 22.2% from the year-ago reported number. The Zacks Consensus Estimate for its quarterly revenues suggests a year-over-year increase of more than 1,200%. 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 12.63%. This is depicted in the graph below:
In third-quarter 2022, RIVN’s adjusted loss per share of $1.57 was narrower than the consensus metric of a loss of $1.78. The bottom line also narrowed from the year-ago loss of $7.69 a share. Total revenues came in at $536 million, surpassing the consensus mark of $514 million and improving from $364 million generated in the second quarter of 2022.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for the electric vehicle (EV) maker for the quarter to be reported. 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. That is not the case here, as elaborated below. 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 -2.86%. This is because the Most Accurate Estimate for loss is 5 cents wider than the Zacks Consensus Estimate.
Zacks Rank: It currently carries a Zacks Rank of 3.
Rivian delivered 8,054 vehicles in the fourth quarter of 2022. It produced 10,020 vehicles at its manufacturing facility in Normal, IL, during the three months ended Dec 31, 2022. The production and delivery numbers witnessed an uptick from the third-quarter 2022 levels. In the third quarter, the company produced 7,363 vehicles and delivered 6,584 vehicles. Higher deliveries are likely to have boosted revenues in the to-be-reported quarter.
In the last reported quarter, RIVN recorded a negative gross profit of $917 million, deteriorating from $82 million in the year-ago period. Persistent commodity cost inflation is likely to have dented Rivian’s fourth-quarter gross margins as well. Further, efforts associated with the firm’s R1 and RCV programs and other advanced product development activities and investments in core in-vehicle technologies are expected to have contributed to rising operating expenses. Discouragingly, Rivian expects a negative adjusted EBITDA of $5,450 million for 2022.
Overall, while improved sales are likely to have aided its performance, high operational and manufacturing costs might have played spoilsport.
Peer Releases
Lucid Group (LCID - Free Report) reported fourth-quarter earnings on Feb 22. It incurred a quarterly loss of 40 cents per share, wider than the Zacks Consensus Estimate of a loss of 39 cents. This compares to a loss of 37 cents per share a year ago. Total revenues came in at $257.7 million, missing the Zacks Consensus Estimate by 11.07%. This compares to year-ago revenues of $26.39 million.
Nikola (NKLA - Free Report) reported fourth-quarter earnings on Feb 23. It came out with a quarterly loss of 37 cents per share, narrower than the Zacks Consensus Estimate of a loss of 46 cents. This compares to a loss of 23 cents per share a year ago. Total revenues of $6.56 million for the quarter ended December 2022 missed the Zacks Consensus Estimate by 80.77%. This compares to nil revenues a year ago.
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High Costs to Mar Rivian (RIVN) Q4 Earnings Despite Sales Growth
Rivian Automotive, Inc. (RIVN - Free Report) is slated to release fourth-quarter 2022 results on Feb 28, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s loss per share and revenues is pegged at $1.89 and $714 million, respectively.
For the fourth quarter, the consensus estimate for RIVN’s loss per share has widened by a cent in the past seven days. Its bottom-line estimates imply an improvement of 22.2% from the year-ago reported number. The Zacks Consensus Estimate for its quarterly revenues suggests a year-over-year increase of more than 1,200%. 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 12.63%. This is depicted in the graph below:
Rivian Automotive, Inc. Price and EPS Surprise
Rivian Automotive, Inc. price-eps-surprise | Rivian Automotive, Inc. Quote
Q3 Highlights
In third-quarter 2022, RIVN’s adjusted loss per share of $1.57 was narrower than the consensus metric of a loss of $1.78. The bottom line also narrowed from the year-ago loss of $7.69 a share. Total revenues came in at $536 million, surpassing the consensus mark of $514 million and improving from $364 million generated in the second quarter of 2022.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for the electric vehicle (EV) maker for the quarter to be reported. 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. That is not the case here, as elaborated below. 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 -2.86%. This is because the Most Accurate Estimate for loss is 5 cents wider than the Zacks Consensus Estimate.
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
Rivian delivered 8,054 vehicles in the fourth quarter of 2022. It produced 10,020 vehicles at its manufacturing facility in Normal, IL, during the three months ended Dec 31, 2022. The production and delivery numbers witnessed an uptick from the third-quarter 2022 levels. In the third quarter, the company produced 7,363 vehicles and delivered 6,584 vehicles. Higher deliveries are likely to have boosted revenues in the to-be-reported quarter.
In the last reported quarter, RIVN recorded a negative gross profit of $917 million, deteriorating from $82 million in the year-ago period. Persistent commodity cost inflation is likely to have dented Rivian’s fourth-quarter gross margins as well. Further, efforts associated with the firm’s R1 and RCV programs and other advanced product development activities and investments in core in-vehicle technologies are expected to have contributed to rising operating expenses. Discouragingly, Rivian expects a negative adjusted EBITDA of $5,450 million for 2022.
Overall, while improved sales are likely to have aided its performance, high operational and manufacturing costs might have played spoilsport.
Peer Releases
Lucid Group (LCID - Free Report) reported fourth-quarter earnings on Feb 22. It incurred a quarterly loss of 40 cents per share, wider than the Zacks Consensus Estimate of a loss of 39 cents. This compares to a loss of 37 cents per share a year ago. Total revenues came in at $257.7 million, missing the Zacks Consensus Estimate by 11.07%. This compares to year-ago revenues of $26.39 million.
Nikola (NKLA - Free Report) reported fourth-quarter earnings on Feb 23. It came out with a quarterly loss of 37 cents per share, narrower than the Zacks Consensus Estimate of a loss of 46 cents. This compares to a loss of 23 cents per share a year ago. Total revenues of $6.56 million for the quarter ended December 2022 missed the Zacks Consensus Estimate by 80.77%. This compares to nil revenues a year ago.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.