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Rivian's (RIVN) Q2 Loss Narrower-Than-Expected, Sales Rise Y/Y
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Rivian Automotive, Inc. (RIVN - Free Report) delivered a loss per share of $1.08 in second-quarter 2023, narrower than the Zacks Consensus Estimate of a loss of $1.41 due to an increase in vehicle deliveries. The bottom line also improved from the loss of $1.89 per share reported in the year-ago quarter.
The company generated quarterly revenues of $1.12 billion, outpacing the Zacks Consensus Estimate of $1 billion. The metric sharply increased from $364 million recorded in the year-ago quarter. Revenues included $34 million from the sale of regulatory credits.
Rivian Automotive, Inc. Price, Consensus and EPS Surprise
During the second quarter, Rivian delivered 12,640 electric vehicles (EVs), up 59% from the preceding quarter and significantly higher than 4,467 EVs delivered in the corresponding quarter of 2022. The EV maker produced 13,992 vehicles in the second quarter, up from 9,395 vehicles in the preceding quarter and 4,401 vehicles in the corresponding quarter of 2022.
For the full-year 2023, Rivian expects to manufacture about 52,000 vehicles, more than double the number it manufactured in 2022 and above its previous guidance of 50,000 vehicles.
RJ Scaringe, CEO of Rivian, said that the company has achieved notable reductions in both R1 and EDV vehicle unit costs by optimizing material, overhead and logistics expenses. The company remains focused on ramping production, driving cost efficiencies, developing future technologies and enhancing the customer experience.
During the quarter, Rivian’s gross loss narrowed to $412 million from $704 million a year ago. A rise in production with the related economies of scale and efforts to reduce material costs through commercial negotiations and engineering design changes resulted in the improvement.
Rivian expects to achieve a positive gross profit sometime in 2024.
As of Jun 30, 2023, Rivian had cash of $10.2 billion, down from $11.78 billion as of Mar 31, 2023. At the end of the quarter, it had available credit lines of about $1.1 billion, for a total liquidity of $11.3 billion. Capital expenditures in the second quarter were $255 million, down from $359 million in the corresponding quarter of 2022.
The automaker expects about $1.7 billion in capex for full-year 2023, down from the prior guidance of $2 billion.
The company has been striving to decelerate spending and bolster its balance sheet, for which it cut employee head count by 6% in February and sold $1.3 billion of convertible notes in March. Moreover, it delayed the launch of the R2 vehicle platform to 2026 from 2025.
During the first half of 2023, Rivian produced nearly 23,400 vehicles. It is currently manufacturing the R1T pickup, the R1S SUV and electric delivery vans for Amazon at its factory in Normal, IL.
The Zacks Consensus Estimate for OSK’s 2023 sales and earnings implies year-over-year growth of 17.1% and 111%, respectively. The EPS estimate for 2023 has moved north by 24 cents in the past seven days. The 2024 EPS estimate has moved up by 30 cents in the past seven days.
The Zacks Consensus Estimate for TM’s 2023 sales and earnings implies year-over-year growth of 10.9% and 61.7%, respectively. The EPS estimate for 2023 has increased by $1.16 in the past 30 days. The 2024 EPS estimate has moved up by $1.98 in the past 30 days.
The Zacks Consensus Estimate for PCAR’s 2023 sales and earnings implies year-over-year growth of 22.3% and 41.5%, respectively. The EPS estimate for 2023 has moved up by 71 cents in the past 30 days. The 2024 EPS estimate has moved north by 3 cents in the past seven days.
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Rivian's (RIVN) Q2 Loss Narrower-Than-Expected, Sales Rise Y/Y
Rivian Automotive, Inc. (RIVN - Free Report) delivered a loss per share of $1.08 in second-quarter 2023, narrower than the Zacks Consensus Estimate of a loss of $1.41 due to an increase in vehicle deliveries. The bottom line also improved from the loss of $1.89 per share reported in the year-ago quarter.
The company generated quarterly revenues of $1.12 billion, outpacing the Zacks Consensus Estimate of $1 billion. The metric sharply increased from $364 million recorded in the year-ago quarter. Revenues included $34 million from the sale of regulatory credits.
Rivian Automotive, Inc. Price, Consensus and EPS Surprise
Rivian Automotive, Inc. price-consensus-eps-surprise-chart | Rivian Automotive, Inc. Quote
During the second quarter, Rivian delivered 12,640 electric vehicles (EVs), up 59% from the preceding quarter and significantly higher than 4,467 EVs delivered in the corresponding quarter of 2022. The EV maker produced 13,992 vehicles in the second quarter, up from 9,395 vehicles in the preceding quarter and 4,401 vehicles in the corresponding quarter of 2022.
For the full-year 2023, Rivian expects to manufacture about 52,000 vehicles, more than double the number it manufactured in 2022 and above its previous guidance of 50,000 vehicles.
RJ Scaringe, CEO of Rivian, said that the company has achieved notable reductions in both R1 and EDV vehicle unit costs by optimizing material, overhead and logistics expenses. The company remains focused on ramping production, driving cost efficiencies, developing future technologies and enhancing the customer experience.
During the quarter, Rivian’s gross loss narrowed to $412 million from $704 million a year ago. A rise in production with the related economies of scale and efforts to reduce material costs through commercial negotiations and engineering design changes resulted in the improvement.
Rivian expects to achieve a positive gross profit sometime in 2024.
As of Jun 30, 2023, Rivian had cash of $10.2 billion, down from $11.78 billion as of Mar 31, 2023. At the end of the quarter, it had available credit lines of about $1.1 billion, for a total liquidity of $11.3 billion. Capital expenditures in the second quarter were $255 million, down from $359 million in the corresponding quarter of 2022.
The automaker expects about $1.7 billion in capex for full-year 2023, down from the prior guidance of $2 billion.
The company has been striving to decelerate spending and bolster its balance sheet, for which it cut employee head count by 6% in February and sold $1.3 billion of convertible notes in March. Moreover, it delayed the launch of the R2 vehicle platform to 2026 from 2025.
During the first half of 2023, Rivian produced nearly 23,400 vehicles. It is currently manufacturing the R1T pickup, the R1S SUV and electric delivery vans for Amazon at its factory in Normal, IL.
Zacks Rank & Key Picks
RIVN currently carries a Zacks Rank #3 (Hold).
Some top-ranked players in the auto space include Oshkosh Corporation (OSK - Free Report) , Toyota Motor Corporation (TM - Free Report) and PACCAR Inc. (PCAR - Free Report) , each carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for OSK’s 2023 sales and earnings implies year-over-year growth of 17.1% and 111%, respectively. The EPS estimate for 2023 has moved north by 24 cents in the past seven days. The 2024 EPS estimate has moved up by 30 cents in the past seven days.
The Zacks Consensus Estimate for TM’s 2023 sales and earnings implies year-over-year growth of 10.9% and 61.7%, respectively. The EPS estimate for 2023 has increased by $1.16 in the past 30 days. The 2024 EPS estimate has moved up by $1.98 in the past 30 days.
The Zacks Consensus Estimate for PCAR’s 2023 sales and earnings implies year-over-year growth of 22.3% and 41.5%, respectively. The EPS estimate for 2023 has moved up by 71 cents in the past 30 days. The 2024 EPS estimate has moved north by 3 cents in the past seven days.