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Polestar (PSNY) Faces Delisting Risk on Delayed Annual Filing
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Polestar Automotive Holding UK PLC (PSNY - Free Report) may get delisted from Nasdaq after repeatedly missing the securities regulator's deadlines for submitting financial reports.
Per Nasdaq’s notice, the Swedish EV manufacturer has 60 days to submit a plan of compliance after failing to file its full-year 2023 and first-quarter 2024 financial reports promptly.
Originally, the company was expected to file its full-year 2023 financial report in February. The deadline was then pushed to the end of April, which the company still failed to meet. Per the company, the delay is partly due to the need to finalize corrections for accounting misstatements from 2021 and 2022.
Polestar expects the restatements to reduce its 2021 net loss by less than 5% and increase its 2022 net loss by less than 5%. Per Reuters, the company also needs more time to complete work on internal control of its financial reporting.
If Nasdaq accepts Polestar’s plan of compliance, the company may have an additional 180 days from the notice date, or until November 2024, to regain compliance.
The company has obtained consent from lenders under its nearly $1 billion, three-year loan facility for the late filing. Polestar asserts its full commitment to regaining compliance.
Per Polestar, the company is working to file its annual report as soon as possible and report its first-quarter 2024 results soon thereafter.
Polestar went public on Nasdaq on May 21, 2021. Since then, the company’s share price rose from $1.05 to $5.46 in mid-November 2021. However, after that, the company’s share price plunged to 15 cents.
The EV maker’s 2024 has been challenging so far, with first-quarter sales dropping 40% to 7,200 vehicles from the year-ago quarter’s sales of 12,076 units. In January, Polestar announced it would cut 450 jobs, which account for 15% of its workforce, to reduce costs and approach break-even.
In February, former parent Volvo sold a 30% stake in Polestar to its parent company Geely. Although Polestar secured $950 million in funding from 12 global banks in late February, this fell short of the previously stated $1.3 billion target needed to break even by 2025.
The Zacks Consensus Estimate for GELYY’s 2024 sales suggests year-over-year growth of 36.6%. The earnings per share (EPS) estimates for 2024 and 2025 have moved up 34 cents and 54 cents, respectively, in the past 60 days.
The consensus estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.29% and 155.14%, respectively. The EPS estimates for 2024 and 2025 have improved 63 cents and 69 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for OSK’s 2024 sales and earnings suggests year-over-year growth of 9.86% and 10.72%, respectively. The EPS estimates for 2024 and 2025 have improved 72 cents and 67 cents, respectively, in the past 30 days.
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Polestar (PSNY) Faces Delisting Risk on Delayed Annual Filing
Polestar Automotive Holding UK PLC (PSNY - Free Report) may get delisted from Nasdaq after repeatedly missing the securities regulator's deadlines for submitting financial reports.
Per Nasdaq’s notice, the Swedish EV manufacturer has 60 days to submit a plan of compliance after failing to file its full-year 2023 and first-quarter 2024 financial reports promptly.
Originally, the company was expected to file its full-year 2023 financial report in February. The deadline was then pushed to the end of April, which the company still failed to meet. Per the company, the delay is partly due to the need to finalize corrections for accounting misstatements from 2021 and 2022.
Polestar expects the restatements to reduce its 2021 net loss by less than 5% and increase its 2022 net loss by less than 5%. Per Reuters, the company also needs more time to complete work on internal control of its financial reporting.
If Nasdaq accepts Polestar’s plan of compliance, the company may have an additional 180 days from the notice date, or until November 2024, to regain compliance.
The company has obtained consent from lenders under its nearly $1 billion, three-year loan facility for the late filing. Polestar asserts its full commitment to regaining compliance.
Per Polestar, the company is working to file its annual report as soon as possible and report its first-quarter 2024 results soon thereafter.
Polestar went public on Nasdaq on May 21, 2021. Since then, the company’s share price rose from $1.05 to $5.46 in mid-November 2021. However, after that, the company’s share price plunged to 15 cents.
The EV maker’s 2024 has been challenging so far, with first-quarter sales dropping 40% to 7,200 vehicles from the year-ago quarter’s sales of 12,076 units. In January, Polestar announced it would cut 450 jobs, which account for 15% of its workforce, to reduce costs and approach break-even.
In February, former parent Volvo sold a 30% stake in Polestar to its parent company Geely. Although Polestar secured $950 million in funding from 12 global banks in late February, this fell short of the previously stated $1.3 billion target needed to break even by 2025.
Zacks Rank & Key Picks
PSNY currently carries a Zacks Rank #4 (Sell).
Some better-ranked players in the auto space are Geely Automobile Holdings Limited (GELYY - Free Report) , Blue Bird Corporation (BLBD - Free Report) and Oshkosh Corporation (OSK - 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 GELYY’s 2024 sales suggests year-over-year growth of 36.6%. The earnings per share (EPS) estimates for 2024 and 2025 have moved up 34 cents and 54 cents, respectively, in the past 60 days.
The consensus estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.29% and 155.14%, respectively. The EPS estimates for 2024 and 2025 have improved 63 cents and 69 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for OSK’s 2024 sales and earnings suggests year-over-year growth of 9.86% and 10.72%, respectively. The EPS estimates for 2024 and 2025 have improved 72 cents and 67 cents, respectively, in the past 30 days.