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Here's How Canoo (GOEV) is Placed Ahead of Q3 Earnings Release

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Canoo Inc. (GOEV - Free Report) is scheduled to release third-quarter 2023 results on Nov 14, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s loss per share and revenues is pegged at 12 cents and $750,000, respectively.

The consensus mark for Canoo’s third-quarter loss per share has remained unchanged in the past 60 days. The electric vehicle (EV) maker’s bottom-line estimates imply growth of 71.4% from the year-ago reported figure. In the last reported quarter, it posted a net loss of 14 cents per share, narrower than the Zacks Consensus Estimate of 19 cents per share and the year-ago loss of 63 cents.

Over the trailing four quarters, Canoo surpassed earnings estimates on all occasions, the average surprise being 18.8%. This is depicted in the graph below:

Canoo Inc. Price and EPS Surprise

Canoo Inc. Price and EPS Surprise

Canoo Inc. price-eps-surprise | Canoo Inc. Quote

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Canoo. 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: Canoo has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is in line with 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: GOEV currently carries a Zacks Rank #3.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Things to Note

In the third quarter of 2023, Canoo launched its latest innovation, the Lifestyle Delivery Vehicle (LDV) 190, marking a strategic move into the Class 2 electric cargo van segment. This addition to the company's lineup not only provides expanded space and flexibility for fleet owners but also offers technologically advanced performance seen in its original LDV 130 model.

The company achieved a significant milestone with a 20,000 unit run rate for its battery module line in Pryor and a state-of-the-art robotics and assembly line in Oklahoma City dedicated to the MPP1 platform. With the commencement of vehicle deliveries and government contract wins, Canoo has successfully transitioned from the pre-revenue stage.

During the quarter under discussion, Canoo showcased its commitment to cutting-edge transportation solutions by delivering Crew Transportation Vehicles to NASA's Kennedy Space Center in Florida and expanding its contract with the Department of Defense. The expansion of Canoo's partnership with the U.S. Department of Defense’s Defense Innovation Unit serves as a testament to its technological prowess and operational reliability.

While these strategic moves are expected to positively impact the third-quarter results, high capital expenditure requirements and operating expenses could pose challenges to the company's financial performance. Canoo anticipates an adjusted loss before interest, taxes, depreciation, and amortization in the range of $120-$140 million for the second half of 2023.

Quarterly Releases of Key EV Players

Tesla (TSLA - Free Report) reported third-quarter 2023 results on Oct 18. It reported earnings per share of 66 cents for the quarter under review, which declined from the year-ago figure of $1.05 and also missed the Zacks Consensus Estimate of 72 cents. Total revenues came in at $23,350 million, witnessing year-over-year growth of 9%. The top line, however, fell short of the consensus mark of $24,381 million.

Tesla had cash and cash equivalents of $26,077 million as of Sep 30, 2023, compared with $22,185 million on Dec 31, 2022. Net cash provided by operating activities amounted to $3,308 million in third-quarter 2023. Capital expenditure totaled $2,460 million in the quarter under review.

Rivian Automotive, Inc. (RIVN - Free Report) released third-quarter 2023 results on Nov 7. It incurred a loss per share of $1.19, narrower than the Zacks Consensus Estimate of a loss of $1.36 and the year-ago period’s $1.57 loss per share. The company generated quarterly revenues of $1.34 billion, missing the Zacks Consensus Estimate of $1.36 billion.

During the third quarter, Rivian delivered 15,564 electric vehicles (EVs), up 23.1% from the preceding quarter and significantly higher than 6,584 EVs delivered in the corresponding quarter of 2022. The EV maker produced 16,304 vehicles in the third quarter, up from 13,992 vehicles in the preceding quarter and 7,363 vehicles in the corresponding quarter of 2022. For full-year 2023, Rivian expects to manufacture about 54,000 vehicles.

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