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Lucid (LCID) to Report Q1 Earnings: What's in the Offing?

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Lucid Group (LCID - Free Report) is scheduled to release first-quarter 2023 results on May 8, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at a loss of 38 cents per share and $158.4 million, respectively. The consensus mark for Lucid’s first-quarter loss per share widened by a cent in the past 30 days.

Lucid’s bottom-line estimates imply a decline of 660% from the year-ago reported figure. The Zacks Consensus Estimate for its quarterly revenues suggests a year-over-year increase of 174.62%.

In the last reported quarter, it posted a net loss of 40 cents per share, wider than the Zacks Consensus Estimate of 39 cents per share. Over the trailing four quarters, Lucid has surpassed earnings estimates on two out of four occasions and missed in the rest, the average surprise being 21.14%. This is depicted in the graph below:

Lucid Group, Inc. Price and EPS Surprise

 

Lucid Group, Inc. Price and EPS Surprise

Lucid Group, Inc. price-eps-surprise | Lucid Group, Inc. Quote

Let’s take a look at how things have shaped up ahead of its first-quarter earnings release.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Lucid. 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. That is not the case here, as elaborated below.

Earnings ESP: Lucid has an Earnings ESP of -12.00%. This is because the Most Accurate Estimate of loss is pegged 4 cents wider 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: LCID currently carries a Zacks Rank #4 (Sell).

Factors to Note

In the first quarter, Lucid produced 2,314 vehicles, down from 3,493 in the fourth quarter. The company delivered 1,406 vehicles in the first quarter, down from 1,932 in the fourth quarter. The decline in deliveries is likely to have deteriorated Lucid’s performance in the to-be-reported quarter.

The rising interest rates, which have made the cost of financing vehicles expensive, along with the price cut by one of Lucid’s biggest rivals, must have acted against the EV manufacturer. Also, supply-chain disruptions, high commodity costs, tough labor market and logistical challenges are likely to have dented the company’s performance in the reporting quarter.

The company’s cost of revenue in the last quarter massively increased to $615.2 million from the$151.5 million reported in the corresponding quarter of 2021. The spend on R&D also widened to $221.3 million from $163.6 in the corresponding quarter of 2021. High production and operating costs are likely to have adversely affected the results of the first quarter.

Stocks With the Favorable Combination

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:

Rivian Automotive (RIVN - Free Report) will release first-quarter 2023 results on May 9. The company has an Earnings ESP of +0.84% and a Zacks Rank #3.

The Zacks Consensus Estimate for Rivian’s to-be-reported quarter’s loss and revenues is pegged at $1.51 per share and $686.82 million, respectively. RIVN surpassed earnings estimates in three out of the trailing four quarters, while missing in one in fiscal 2022, the average surprise being 2.94%.

Aeva Technologies (AEVA - Free Report) will release first-quarter 2023 results on May 10. The company has an Earnings ESP of +6.25% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Aeva’s to-be-reported quarter’s loss and revenues is pegged at 16 cents per share and $0.88 million, respectively. AEVA surpassed earnings estimates in three out of the trailing four quarters, while missing in one in fiscal 2022, the average surprise being 13.68%.

Toyota Motor (TM - Free Report) will release first-quarter 2023 results on May 10. The company has an Earnings ESP of +6.36% and a Zacks Rank #3.

The Zacks Consensus Estimate for Toyota’s to-be-reported quarter’s earnings and revenues is pegged at $2.83 per share and $68.77 billion, respectively. TM surpassed earnings estimates in three out of the trailing four quarters, while missing in one in fiscal 2022, the average surprise being 6.74%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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