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Nikola (NKLA) to Report Q4 Earnings: What's in the Cards?

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Nikola Corporation (NKLA - Free Report) is slated to release fourth-quarter 2023 results on Feb 22, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s loss per share and revenues is pegged at 16 cents and $14.52 million, respectively.

For the fourth quarter, the consensus estimate for NKLA’s loss per share has widened by 2 cents in the past 60 days. Its bottom-line estimates imply growth of 56.8% from the year-ago reported number.

The Zacks Consensus Estimate for its quarterly revenues suggests a year-over-year growth of 121.3%.

NKLA surpassed earnings estimates in three of the trailing four quarters and missed once, the average negative surprise being 14.16%.

Nikola Corporation Price and EPS Surprise

 

Nikola Corporation Price and EPS Surprise

Nikola Corporation price-eps-surprise | Nikola Corporation Quote

 

Q3 Highlights

In third-quarter 2023, Nikola incurred an adjusted quarterly loss of 33 cents per share, wider than the Zacks Consensus Estimate of a loss of 17 cents. This compares to an adjusted loss of 54 cents per share reported a year ago.

Nikola posted negative revenues of $1.73 million in the quarter, lagging the Zacks Consensus Estimate of $23 million.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Nikola this time around, as it does not have the right combination of the two key ingredients. A positive Earnings ESP combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.

Earnings ESP: NKLA 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: It currently carries a Zacks Rank #3.

Things to Note

In September 2023, Nikola announced the expansion of its dealer network into Canada for its Class 8 truck sales. The vehicle manufacturer is eligible for the Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles Program, which offers Canadian organizations in all provinces, territories and municipalities up to CAD200,000 in incentives toward the purchase or lease of the Nikola hydrogen fuel cell electric truck and up to CAD150,000 in incentives toward the purchase or lease of the Nikola battery-electric truck.

It is also eligible for the Clean BC Go Electric Rebates in the province of British Columbia, which offers CAD150,000 in incentives toward the purchase or lease of both the Nikola hydrogen fuel cell and battery-electric truck. Expansion of the dealer network, along with incentives, is likely to have bolstered NKLA’s fourth-quarter 2023 results.

The successful completion of Phase 2 assembly expansion at the Coolidge manufacturing facility marks the dawn of a transformative era in transportation. Equipped with a versatile mixed-model production line capable of manufacturing hydrogen fuel cell and battery-electric trucks, the facility is poised to achieve an annual production capacity of approximately 2,400 trucks across three shifts. The rise in production capacity is likely to have bolstered the company's result in the to-be-reported quarter.

During the fourth quarter of 2023, the company inked an agreement with FirstElement Fuel (FEF). Per the strategic partnership, FEF is appointed as an authorized fueling solutions provider, offering Nikola with an access to a new heavy-duty truck station near Oakland port.

Meanwhile, with the halt in battery production operations, the decline in production trend is likely to have persisted in the quarter under review. In the last reported quarter, the company’s net loss widened to $425.8 million from $236.2 million recorded in the year-ago period. Widening losses are likely to adversely impact the to-be-reported quarter’s result.

Earnings Whispers for Other Auto Stocks

Lucid Group (LCID - Free Report) is scheduled to post fourth-quarter earnings on Feb 21. The Zacks Consensus Estimate is pegged at a loss of 28 cents per share. The company has an Earnings ESP of -14.29% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

LCID missed earnings estimates in each of the trailing four quarters, the average negative surprise being 7.70%.

Rivian Automotive, Inc. (RIVN - Free Report) is scheduled to post fourth-quarter earnings on Feb 21. The Zacks Consensus Estimate is pegged at a loss of $1.39 cents per share. The company currently has an Earnings ESP of +0.72% and a Zacks Rank #3.

RIVN surpassed earnings estimates in each of the trailing four quarters, the average surprise being 15.40%.

Fisker Inc. is scheduled to post fourth-quarter earnings on Feb 26. The Zacks Consensus Estimate is pegged at a loss of 20 cents per share. The company has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.

FSR surpassed earnings estimates in one of the trailing four quarters and missed thrice, the average negative surprise being 23.37%.

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


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