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Workhorse (WKHS) Q4 Loss Wider Than Expected, Revenues Beat
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Workhorse Group Inc. (WKHS - Free Report) reported an adjusted loss of 18 cents per share for the fourth quarter of 2023, wider than the Zacks Consensus Estimate of a loss of 11 cents. The company had incurred an adjusted loss of 24 cents in the year-ago quarter.
Workhorse generated net revenues of $4.41 million, which surpassed the Zacks Consensus Estimate of $3 million. Revenues rose 29.4% year over year due to increased sales volume and revenue contribution from Stables by Workhorse and DaaS.
Key Takeaways
Cost of sales fell to $18.1 million from $21.2 million reported in the corresponding quarter of 2022 due to a reduction in disposal costs.
Selling, general and administrative expenses rose to $15.1 million from $13.1 million reported in the corresponding quarter of 2022 as a result of increased legal and professional fees.
Research and development expenses fell to $6.4 million from $8 million reported in the year-ago quarter, thanks to reduced consulting and prototype costs.
The truck manufacturer’s net loss in the fourth quarter of 2023 widened to $45.3 million from $38.7 million reported in the year-ago quarter.
As of Dec 31, 2023, Workhorse had $25.8 million in cash and cash equivalents, down from $99.3 million as of Dec 31, 2022.
Updates
Per Rick Dauch, CEO of Workhorse, as part of its cost-saving initiative, the company has decided to shift its Aero business toward a Drones-as-a-Service model, which needs less capital investment. The company has also decided to significantly reduce its headcount.
WKHS is currently implementing a reduction in force (RIF), impacting 20% of its total workforce, excluding direct labor positions. The company will also be reducing headcounts in its Aero division.
The truck manufacturer expects to incur minimal costs associated with the RIF. As part of the company's cost-containment effort, its executive officers have consented to defer 20% of their cash compensation for at least three months.
Workhorse has not provided specific annual revenue or unit guidance for the first quarter of 2024. However, the company admitted that it is entering 2024 with robust production and delivery capabilities, as well as a sharp focus on financial discipline and cost management.
The Zacks Consensus Estimate for MOD’s 2024 sales and earnings per share (EPS) suggests year-over-year growth of 4% and 67.2%, respectively. The EPS estimates for 2024 have improved 22 cents in the past 60 days. The EPS estimates for 2025 have improved 12 cents in the past 30 days.
The Zacks Consensus Estimate for TM’s 2024 sales and earnings suggests year-over-year growth of 10% and 73.6%, respectively. The EPS estimates for 2024 and 2025 have improved 31 cents and 86 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for ALSN’s 2024 sales and earnings suggests year-over-year growth of 2.1% and 3.2%, respectively. The EPS estimates for 2024 and 2025 have improved 67 cents and 71 cents, respectively, in the past 30 days.
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Workhorse (WKHS) Q4 Loss Wider Than Expected, Revenues Beat
Workhorse Group Inc. (WKHS - Free Report) reported an adjusted loss of 18 cents per share for the fourth quarter of 2023, wider than the Zacks Consensus Estimate of a loss of 11 cents. The company had incurred an adjusted loss of 24 cents in the year-ago quarter.
Workhorse generated net revenues of $4.41 million, which surpassed the Zacks Consensus Estimate of $3 million. Revenues rose 29.4% year over year due to increased sales volume and revenue contribution from Stables by Workhorse and DaaS.
Key Takeaways
Cost of sales fell to $18.1 million from $21.2 million reported in the corresponding quarter of 2022 due to a reduction in disposal costs.
Selling, general and administrative expenses rose to $15.1 million from $13.1 million reported in the corresponding quarter of 2022 as a result of increased legal and professional fees.
Research and development expenses fell to $6.4 million from $8 million reported in the year-ago quarter, thanks to reduced consulting and prototype costs.
The truck manufacturer’s net loss in the fourth quarter of 2023 widened to $45.3 million from $38.7 million reported in the year-ago quarter.
As of Dec 31, 2023, Workhorse had $25.8 million in cash and cash equivalents, down from $99.3 million as of Dec 31, 2022.
Updates
Per Rick Dauch, CEO of Workhorse, as part of its cost-saving initiative, the company has decided to shift its Aero business toward a Drones-as-a-Service model, which needs less capital investment. The company has also decided to significantly reduce its headcount.
WKHS is currently implementing a reduction in force (RIF), impacting 20% of its total workforce, excluding direct labor positions. The company will also be reducing headcounts in its Aero division.
The truck manufacturer expects to incur minimal costs associated with the RIF. As part of the company's cost-containment effort, its executive officers have consented to defer 20% of their cash compensation for at least three months.
Workhorse has not provided specific annual revenue or unit guidance for the first quarter of 2024. However, the company admitted that it is entering 2024 with robust production and delivery capabilities, as well as a sharp focus on financial discipline and cost management.
Zacks Rank & Key Picks
WKHS currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Modine Manufacturing Company (MOD - Free Report) , Toyota Motor Corporation (TM - Free Report) and Allison Transmission Holdings, Inc. (ALSN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MOD’s 2024 sales and earnings per share (EPS) suggests year-over-year growth of 4% and 67.2%, respectively. The EPS estimates for 2024 have improved 22 cents in the past 60 days. The EPS estimates for 2025 have improved 12 cents in the past 30 days.
The Zacks Consensus Estimate for TM’s 2024 sales and earnings suggests year-over-year growth of 10% and 73.6%, respectively. The EPS estimates for 2024 and 2025 have improved 31 cents and 86 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for ALSN’s 2024 sales and earnings suggests year-over-year growth of 2.1% and 3.2%, respectively. The EPS estimates for 2024 and 2025 have improved 67 cents and 71 cents, respectively, in the past 30 days.