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Tesla's (TSLA) Q2 Earnings Miss Estimates, Revenues Beat
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Tesla, Inc. (TSLA - Free Report) has incurred adjusted loss of $3.06 per share in second-quarter 2018, wider than the Zacks Consensus Estimate of loss of $2.78. The company reported loss of $1.33 per share in the prior-year quarter.
The reported net loss in the quarter under review was $742.7 million compared with the year-ago net loss of $401.4 million.
Revenues increased to $4 billion from $2.8 billion registered in second-quarter 2017. The figure surpassed the Zacks Consensus Estimate of $3.8 billion.
Tesla produced 53,339 vehicles in second-quarter 2018. Moreover, the company delivered 22,319 Model S and Model X vehicles, and 18,449 Model 3 vehicles, totaling 40,768 deliveries.
Total automotive revenues, including revenues from automotive sales and leasing, increased 47% year over year to $3.36 billion in the reported quarter. The rise was due to Model 3 deliveries.
Energy generation and storage revenues soared from $286.8 million in second-quarter 2017 to $374.4 million in the reported quarter. The rise was mainly due to considerable growth of energy-storage deployments.
Services and other revenues increased 25% year over year, primarily due to higher used-car sales.
Tesla’s second-quarter 2018 automotive gross margin was 20.6%, declining 735 basis points (bps) from second-quarter 2017.
Energy generation and storage gross margin declined 1,716 bps on a year-over-year basis to 11.8%.
Tesla had cash and cash equivalents of $2.24 billion as of Jun 30, 2018, compared with $3.37 billion, as of Dec 31, 2017.
Net cash used in operating activities amounted to $129.7 million in second-quarter 2018 compared with net cash used of $200.2 million in second-quarter 2017. Capital expenditure declined to $609.8 million from $959.1 million in the year-ago quarter.
Business Expansion
In second-quarter 2018, Tesla opened eight new stores and service locations. The company also opened 103 new supercharger locations, reaching the global total of 1,308.
Model 3 Update
The company roughly produced 7,000 Model 3, Model S and Model X vehicles in the last week of June. In July, the company repeatedly produced 5,000 Model 3 cars, while producing 2,000 per week as well. After achieving the weekly target of 5,000 Model 3 car production, Tesla is now aiming to produce 6,000 Model 3 vehicles per week by late August.
Outlook
The company expects to produce 50,000-55,000 Model 3 vehicles in third-quarter 2018, marking an increase of 75-92% from the prior quarter. Model 3 gross margin is likely to increase to around 15% in the third quarter and 20% in the fourth quarter, due to an improving mix and a decline in manufacturing costs.
Tesla expects to deliver around 100,000 units of Model S and Model X in 2018, similar to the prior-quarter guidance.
PACCAR has an expected long-term growth rate of 10.8%. Over the past year, shares of the company have moved up 2.1%.
AB Volvo has an expected long-term growth rate of 15%. Over the past year, shares of the company have gained 1%.
Fox Factory has an expected long-term growth rate of 15.8%. Shares of the company have risen 31.3% over the past year.
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It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6% and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Tesla's (TSLA) Q2 Earnings Miss Estimates, Revenues Beat
Tesla, Inc. (TSLA - Free Report) has incurred adjusted loss of $3.06 per share in second-quarter 2018, wider than the Zacks Consensus Estimate of loss of $2.78. The company reported loss of $1.33 per share in the prior-year quarter.
The reported net loss in the quarter under review was $742.7 million compared with the year-ago net loss of $401.4 million.
Revenues increased to $4 billion from $2.8 billion registered in second-quarter 2017. The figure surpassed the Zacks Consensus Estimate of $3.8 billion.
Tesla produced 53,339 vehicles in second-quarter 2018. Moreover, the company delivered 22,319 Model S and Model X vehicles, and 18,449 Model 3 vehicles, totaling 40,768 deliveries.
Total automotive revenues, including revenues from automotive sales and leasing, increased 47% year over year to $3.36 billion in the reported quarter. The rise was due to Model 3 deliveries.
Energy generation and storage revenues soared from $286.8 million in second-quarter 2017 to $374.4 million in the reported quarter. The rise was mainly due to considerable growth of energy-storage deployments.
Services and other revenues increased 25% year over year, primarily due to higher used-car sales.
Tesla’s second-quarter 2018 automotive gross margin was 20.6%, declining 735 basis points (bps) from second-quarter 2017.
Energy generation and storage gross margin declined 1,716 bps on a year-over-year basis to 11.8%.
Tesla, Inc. Price, Consensus and EPS Surprise
Tesla, Inc. Price, Consensus and EPS Surprise | Tesla, Inc. Quote
Financial Position
Tesla had cash and cash equivalents of $2.24 billion as of Jun 30, 2018, compared with $3.37 billion, as of Dec 31, 2017.
Net cash used in operating activities amounted to $129.7 million in second-quarter 2018 compared with net cash used of $200.2 million in second-quarter 2017. Capital expenditure declined to $609.8 million from $959.1 million in the year-ago quarter.
Business Expansion
In second-quarter 2018, Tesla opened eight new stores and service locations. The company also opened 103 new supercharger locations, reaching the global total of 1,308.
Model 3 Update
The company roughly produced 7,000 Model 3, Model S and Model X vehicles in the last week of June. In July, the company repeatedly produced 5,000 Model 3 cars, while producing 2,000 per week as well. After achieving the weekly target of 5,000 Model 3 car production, Tesla is now aiming to produce 6,000 Model 3 vehicles per week by late August.
Outlook
The company expects to produce 50,000-55,000 Model 3 vehicles in third-quarter 2018, marking an increase of 75-92% from the prior quarter. Model 3 gross margin is likely to increase to around 15% in the third quarter and 20% in the fourth quarter, due to an improving mix and a decline in manufacturing costs.
Tesla expects to deliver around 100,000 units of Model S and Model X in 2018, similar to the prior-quarter guidance.
Zacks Rank & Key Picks
Tesla currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the auto space are PACCAR Inc. (PCAR - Free Report) , AB Volvo (VLVLY - Free Report) and Fox Factory Holding Corp. (FOXF - Free Report) . While PACCAR sports a Zacks Rank #1 (Strong Buy), both Volvo and Fox Factory Holding carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PACCAR has an expected long-term growth rate of 10.8%. Over the past year, shares of the company have moved up 2.1%.
AB Volvo has an expected long-term growth rate of 15%. Over the past year, shares of the company have gained 1%.
Fox Factory has an expected long-term growth rate of 15.8%. Shares of the company have risen 31.3% over the past year.
Today’s Stocks From Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6% and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>