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Will Rise in Deliveries Drive Tesla's (TSLA) Q4 Earnings?
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Tesla, Inc. (TSLA - Free Report) is scheduled to announce fourth-quarter fiscal 2017 and full-year earnings on Feb 7, 2018. Last quarter, the bottom line missed the Zacks Consensus Estimate while the top line beat the same.
Also, at third-quarter earnings release, the company announced its outlook for 2017. Tesla had expected a year-over-year surge of 30% in its Model S and Model X deliveries. Further, it planned to manufacture about 10% fewer Model S and Model X in order to focus more on the Model 3 production.
Now talking about the actual vehicle deliveries in fourth-quarter fiscal 2017, the company witnessed a 27% year-over-year rise in deliveries to 29,870 vehicles. Of the total, 15,200 were Model S, 13,120 were Model X and 1,550 were Model 3.
Moreover, Tesla delivered a total of 101,312 Model S and X vehicles in 2017, exceeding its projection by 3% over the previous year. This increase in deliveries will help uplifting the company’s Automotive segment revenues.
However, for fourth-quarter fiscal 2017, Tesla expects its automotive gross margin to decline around 15%, sequentially. This downside is primarily due to a considerable escalation in Model 3 manufacturing costs. (Read more: Will Progress in Model 3 Production Aid Tesla's Q4 Earnings?)
The Zacks Consensus Estimate for Tesla’s another segment, Automotive Leasing, stands at $311 million, up from the third-quarter’s actual net sales of $286 million.
Per Tesla, Energy generation and storage segment is expected to see a contraction in its gross margin figure in the fourth quarter. This fall will be due to seasonality of generation by solar assets as well as the increasing mix of energy storage sales. However, this figure is expected to improve in the future with an amplified production capacity of Gigafactory 1, better capacity utilization and reductions in manufacturing costs.
Also, in December 2017, the company started manufacturing its premium solar roof tiles at Gigafactory 2, installations of which, are likely to commence in the subsequent months of 2018.
Moreover, a rise in the company’s used car sales has aided Service and Other segment revenues as well as the gross margin to augment in the third quarter, logging $304 million and $63 million, respectively. This uptrend is anticipated to continue in the following quarter with Tesla’s service network expansions.
Earnings Schedules of Other Major Auto Companies
Among other automotive companies, Allison Transmission Holdings, Inc. (ALSN - Free Report) is expected to release results on Feb 14 whereas The Goodyear Rubber & Tire Company (GT - Free Report) and Tenneco Inc. are slated to report earnings on Feb 8 and 9, respectively.
The long-term earnings growth rate for Allison Transmission, Goodyear and Tenneco are 10%, 12.4% and 12.6%, respectively.
Breaking News: Cryptocurrencies Now Bigger than Visa
The total market cap of all cryptos recently surpassed $700 billion – more than a 3,800% increase in the previous 12 months. They’re now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.
Zacks has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.
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Will Rise in Deliveries Drive Tesla's (TSLA) Q4 Earnings?
Tesla, Inc. (TSLA - Free Report) is scheduled to announce fourth-quarter fiscal 2017 and full-year earnings on Feb 7, 2018. Last quarter, the bottom line missed the Zacks Consensus Estimate while the top line beat the same.
Also, at third-quarter earnings release, the company announced its outlook for 2017. Tesla had expected a year-over-year surge of 30% in its Model S and Model X deliveries. Further, it planned to manufacture about 10% fewer Model S and Model X in order to focus more on the Model 3 production.
Now talking about the actual vehicle deliveries in fourth-quarter fiscal 2017, the company witnessed a 27% year-over-year rise in deliveries to 29,870 vehicles. Of the total, 15,200 were Model S, 13,120 were Model X and 1,550 were Model 3.
Tesla Inc. Price and EPS Surprise
Tesla Inc. Price and EPS Surprise | Tesla Inc. Quote
Moreover, Tesla delivered a total of 101,312 Model S and X vehicles in 2017, exceeding its projection by 3% over the previous year. This increase in deliveries will help uplifting the company’s Automotive segment revenues.
However, for fourth-quarter fiscal 2017, Tesla expects its automotive gross margin to decline around 15%, sequentially. This downside is primarily due to a considerable escalation in Model 3 manufacturing costs. (Read more: Will Progress in Model 3 Production Aid Tesla's Q4 Earnings?)
The Zacks Consensus Estimate for Tesla’s another segment, Automotive Leasing, stands at $311 million, up from the third-quarter’s actual net sales of $286 million.
Per Tesla, Energy generation and storage segment is expected to see a contraction in its gross margin figure in the fourth quarter. This fall will be due to seasonality of generation by solar assets as well as the increasing mix of energy storage sales. However, this figure is expected to improve in the future with an amplified production capacity of Gigafactory 1, better capacity utilization and reductions in manufacturing costs.
Also, in December 2017, the company started manufacturing its premium solar roof tiles at Gigafactory 2, installations of which, are likely to commence in the subsequent months of 2018.
Moreover, a rise in the company’s used car sales has aided Service and Other segment revenues as well as the gross margin to augment in the third quarter, logging $304 million and $63 million, respectively. This uptrend is anticipated to continue in the following quarter with Tesla’s service network expansions.
Earnings Schedules of Other Major Auto Companies
Among other automotive companies, Allison Transmission Holdings, Inc. (ALSN - Free Report) is expected to release results on Feb 14 whereas The Goodyear Rubber & Tire Company (GT - Free Report) and Tenneco Inc. are slated to report earnings on Feb 8 and 9, respectively.
The long-term earnings growth rate for Allison Transmission, Goodyear and Tenneco are 10%, 12.4% and 12.6%, respectively.
Breaking News: Cryptocurrencies Now Bigger than Visa
The total market cap of all cryptos recently surpassed $700 billion – more than a 3,800% increase in the previous 12 months. They’re now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.
Zacks has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.
Click here to access these stocks >>