We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
XOS Completes ElectraMeccanica Acquisition to Boost Growth
Read MoreHide Full Article
Xos, Inc. (XOS - Free Report) has completed the acquisition of ElectraMeccanica Vehicles Corp., a designer and assembler of electric vehicles (EV). The terms of the acquisition were initially revealed on Jan 11, 2024.
The acquisition is expected to add $48 million to Xos' balance sheet and provide growth capital for the company.
Per Dakota Semler, CEO and co-founder of XOS, the growth capital obtained in the transaction, coupled with reduced cash burn, will pave the way for the company’s profitability as it plans to scale deliveries in the coming quarters. Xos, which currently has positive gross margin, aims to become free cash flow positive.
In the fourth quarter of 2023, the electric truck manufacturer delivered a record 110 units to its fleet customers. Its client base in 2023 comprised prominent names like FedEx Ground, UPS, Loomis, Canada Post, UniFirst and Penske, underscoring robust demand for its electric commercial vehicles.
As part of the acquisition deal, ElectraMeccanica shareholders received 0.0143739 shares of Xos common stock for each ElectraMeccanica share held.
Following the completion of the transaction, former shareholders of ElectraMeccanica own roughly 21% of XOS.
ElectraMeccanica stock was delisted from Nasdaq on Mar 26, 2024, following the completion of the transaction. XOS will facilitate the surrender of the EV designer and assembler's reporting issuer status in British Columbia.
Prior to this acquisition, Xos held no common shares of ElectraMeccanica. After completing the transaction, the electric truck manufacturer has beneficial ownership and control over the latter’s entire issued and outstanding common shares.
Xos incurred a fourth-quarter 2023 loss per share of $2.33, narrower than the Zacks Consensus Estimate of a loss of $2.40 and the year-ago loss of $4.20. Revenues of $18.4 million slightly missed the consensus mark of $19 million but rose from $8.6 million generated in the fourth quarter of 2022.
For 2024, the company envisions revenues between $66.7 million and $100.4 million. Deliveries are expected in the band of 400-600 units. Adjusted operating loss is forecasted in the range of $43.7-$48.7 million.
The Zacks Consensus Estimate for MOD’s 2024 sales and earnings per share (EPS) suggests year-over-year growth of 4.3% and 67.7%, respectively. The EPS estimates for 2024 and 2025 have moved up by a penny each 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 86 cents and $1.01, respectively, in the past 30 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
XOS Completes ElectraMeccanica Acquisition to Boost Growth
Xos, Inc. (XOS - Free Report) has completed the acquisition of ElectraMeccanica Vehicles Corp., a designer and assembler of electric vehicles (EV). The terms of the acquisition were initially revealed on Jan 11, 2024.
The acquisition is expected to add $48 million to Xos' balance sheet and provide growth capital for the company.
Per Dakota Semler, CEO and co-founder of XOS, the growth capital obtained in the transaction, coupled with reduced cash burn, will pave the way for the company’s profitability as it plans to scale deliveries in the coming quarters. Xos, which currently has positive gross margin, aims to become free cash flow positive.
In the fourth quarter of 2023, the electric truck manufacturer delivered a record 110 units to its fleet customers. Its client base in 2023 comprised prominent names like FedEx Ground, UPS, Loomis, Canada Post, UniFirst and Penske, underscoring robust demand for its electric commercial vehicles.
As part of the acquisition deal, ElectraMeccanica shareholders received 0.0143739 shares of Xos common stock for each ElectraMeccanica share held.
Following the completion of the transaction, former shareholders of ElectraMeccanica own roughly 21% of XOS.
ElectraMeccanica stock was delisted from Nasdaq on Mar 26, 2024, following the completion of the transaction. XOS will facilitate the surrender of the EV designer and assembler's reporting issuer status in British Columbia.
Prior to this acquisition, Xos held no common shares of ElectraMeccanica. After completing the transaction, the electric truck manufacturer has beneficial ownership and control over the latter’s entire issued and outstanding common shares.
Xos incurred a fourth-quarter 2023 loss per share of $2.33, narrower than the Zacks Consensus Estimate of a loss of $2.40 and the year-ago loss of $4.20. Revenues of $18.4 million slightly missed the consensus mark of $19 million but rose from $8.6 million generated in the fourth quarter of 2022.
For 2024, the company envisions revenues between $66.7 million and $100.4 million. Deliveries are expected in the band of 400-600 units. Adjusted operating loss is forecasted in the range of $43.7-$48.7 million.
Zacks Rank & Key Picks
XOS 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 4.3% and 67.7%, respectively. The EPS estimates for 2024 and 2025 have moved up by a penny each 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 86 cents and $1.01, respectively, in the past 30 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.