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.
Tesla's (TSLA) Q3 Earnings Miss Estimates, Revenues Grow
Read MoreHide Full Article
Tesla, Inc.’s (TSLA - Free Report) incurred adjusted loss of $2.92 per share in third-quarter 2017, wider than the Zacks Consensus Estimate of a loss of $2.45. The company had reported earnings of 70 cents per share in the prior-year quarter.
The reported net loss in the quarter was $671.2 million compared with the year-ago net income of $21.9 million.
Revenues increased to $2.98 billion from $2.30 billion registered in third-quarter 2016. The figure also surpassed the Zacks Consensus Estimate of $2.92 billion.
Tesla delivered 26,137 vehicles in the third quarter of 2017. In third-quarter 2017, the combined sales of Model S and Model X grew 4.5% from the year-ago figure.
Revenues from Automotive sales increased to $2.36 billion in the reported quarter from $2.15 billion a year ago.
Energy generation and storage revenues soared from $23.3 million in the third quarter of 2016 to $317.5 million in the reported quarter.
Services and Other revenues increased to $304.3 million from $126.4 million in the year-ago quarter.
Tesla’s third-quarter automotive gross margin was 18.7%, declining 628 basis points (bps) from second-quarter 2017 due to considerable rise in manufacturing expenses of Model 3.
Energy generation and storage gross margin declined 368 bps sequentially in the quarter to 25.3%.
Financial Position
Tesla had cash and cash equivalents of $3.53 billion as of Sep 30, 2017 compared with $3.39 billion, as of Dec 31, 2016.
Net cash used in operating activities amounted to $300.6 million in the third quarter compared with net cash provided of $423.6 million a year ago. Capital expenditures jumped to $1.12 billion from $247.6 million in the year-ago quarter.
Business Expansion
In third-quarter 2017, Tesla opened 18 new stores and service locations and added 126 new Supercharger stations.
Model 3 Update
Tesla fell short of its third-quarter 2017 production goals of the new Model 3 sedan. The company produced 260 Model 3s and delivered 222, missing the production target of 1,500. This indicates that production has not been as smooth as anticipated.
Tesla intends to achieve a production rate of 5,000 Model 3 vehicles per week by late first-quarter 2018.
Outlook
Currently Tesla expects to deliver around 100,000 units of Model S and Model X in 2017, up 30% from 2016. However, the company intends sequentially cut down production of Model S and Model X by 10% in the fourth quarter in order to divert more resources toward the production of Model 3. This will result in a decline in the inventory level of finished Model S and Model X vehicles.
The company expects Model 3 gross margin to reach break-even level by the end of fourth-quarter 2017 as a result of higher capacity utilization. Also, the company expects to achieve the target gross margin level of 25% in 2018.
The company also anticipates a capital expenditure of approximately $1 billion in fourth-quarter 2017.
Zacks Rank & Other Key Picks
Tesla currently carries a Zacks Rank #5 (Strong Buy).
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Image: Bigstock
Tesla's (TSLA) Q3 Earnings Miss Estimates, Revenues Grow
Tesla, Inc.’s (TSLA - Free Report) incurred adjusted loss of $2.92 per share in third-quarter 2017, wider than the Zacks Consensus Estimate of a loss of $2.45. The company had reported earnings of 70 cents per share in the prior-year quarter.
The reported net loss in the quarter was $671.2 million compared with the year-ago net income of $21.9 million.
Revenues increased to $2.98 billion from $2.30 billion registered in third-quarter 2016. The figure also surpassed the Zacks Consensus Estimate of $2.92 billion.
Tesla delivered 26,137 vehicles in the third quarter of 2017. In third-quarter 2017, the combined sales of Model S and Model X grew 4.5% from the year-ago figure.
Revenues from Automotive sales increased to $2.36 billion in the reported quarter from $2.15 billion a year ago.
Energy generation and storage revenues soared from $23.3 million in the third quarter of 2016 to $317.5 million in the reported quarter.
Services and Other revenues increased to $304.3 million from $126.4 million in the year-ago quarter.
Tesla’s third-quarter automotive gross margin was 18.7%, declining 628 basis points (bps) from second-quarter 2017 due to considerable rise in manufacturing expenses of Model 3.
Energy generation and storage gross margin declined 368 bps sequentially in the quarter to 25.3%.
Financial Position
Tesla had cash and cash equivalents of $3.53 billion as of Sep 30, 2017 compared with $3.39 billion, as of Dec 31, 2016.
Net cash used in operating activities amounted to $300.6 million in the third quarter compared with net cash provided of $423.6 million a year ago. Capital expenditures jumped to $1.12 billion from $247.6 million in the year-ago quarter.
Business Expansion
In third-quarter 2017, Tesla opened 18 new stores and service locations and added 126 new Supercharger stations.
Model 3 Update
Tesla fell short of its third-quarter 2017 production goals of the new Model 3 sedan. The company produced 260 Model 3s and delivered 222, missing the production target of 1,500. This indicates that production has not been as smooth as anticipated.
Tesla intends to achieve a production rate of 5,000 Model 3 vehicles per week by late first-quarter 2018.
Outlook
Currently Tesla expects to deliver around 100,000 units of Model S and Model X in 2017, up 30% from 2016. However, the company intends sequentially cut down production of Model S and Model X by 10% in the fourth quarter in order to divert more resources toward the production of Model 3. This will result in a decline in the inventory level of finished Model S and Model X vehicles.
The company expects Model 3 gross margin to reach break-even level by the end of fourth-quarter 2017 as a result of higher capacity utilization. Also, the company expects to achieve the target gross margin level of 25% in 2018.
The company also anticipates a capital expenditure of approximately $1 billion in fourth-quarter 2017.
Zacks Rank & Other Key Picks
Tesla currently carries a Zacks Rank #5 (Strong Buy).
A few better-ranked companies in the auto space are Daimler AG , BorgWarner Inc. (BWA - Free Report) and Ford Motor Company (F - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Daimler has an expected long-term growth rate of 2.8%.
BorgWarner has an expected long-term growth rate of 9%.
Ford has an expected long-term growth rate of 10.7%.
Tesla Inc. Price, Consensus and EPS Surprise
Tesla Inc. Price, Consensus and EPS Surprise | Tesla Inc. Quote
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>