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Tesla's (TSLA) Q4 Earnings & Revenues Beat Estimates, Up Y/Y

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Tesla, Inc. (TSLA - Free Report) reported earnings per share of $2.14 in fourth-quarter 2019, beating the Zacks Consensus Estimate of $1.62. This outperformance stemmed from higher-than-expected automotive revenues, which came in at $6.37 billion, beating the consensus mark of $5.96 billion. The earnings figure also came in higher than the prior-year quarter’s $1.93 per share.

During the reported quarter, net income attributable to common shareholders amounted to $105 million compared with the net income of $140 million recorded in the year-ago quarter.

Revenues increased to $7.38 billion from the $7.22 billion registered in fourth-quarter 2018. Also, the revenue figure surpassed the Zacks Consensus Estimate of $7.05 billion.

During the fourth quarter, Tesla reported record delivery of 112,095 vehicles.

Total automotive revenues, including that from automotive sales and leasing, inched up 1% year over year to $6.37 billion in the quarter.

Energy generation and storage revenues increased from $372 million in fourth-quarter 2018 to $436 million in the reported quarter. Services and other revenues were up 9.23% year over year to $580 million.

Tesla’s fourth-quarter 2019 automotive gross margin was 22.5%, shrinking 179 basis points (bps) from fourth-quarter 2018.

Tesla, Inc. Price, Consensus and EPS Surprise

Tesla, Inc. Price, Consensus and EPS Surprise

Tesla, Inc. price-consensus-eps-surprise-chart | Tesla, Inc. Quote

Financial Position

Tesla had cash and cash equivalents of $6.3 billion as of Dec 31, 2019, compared with $3.69 billion as of Dec 31, 2018, driven by positive quarterly free cash flow of $1 billion.

Net cash provided by operating activities amounted to $1.43 million in fourth-quarter 2019 compared with $1.24 billion of net cash used in fourth-quarter 2018. Capital expenditure increased to $412 million from the year-ago quarter’s $325 million, mainly due to investments in Gigafactory Shanghai and Model Y preparations in Fremont.

Model 3 & S/X Update

In fourth-quarter 2019, Tesla reported Model 3 production and deliveries of 86,958 and 92,620 units, reflecting year-over-year increase from 61,394 and 63,359 units, respectively. During the quarter, the production rate of Model 3 continued to improve.

Model S/X production and deliveries totaled 17,933 and 19,475 vehicles, down 29% year over year.

Outlook

Tesla is making efforts to improve vehicle deliveries, sequentially and annually, with some expected fluctuations from seasonality. For full-year 2020, the company expects vehicle deliveries to exceed 500,000 units. Due to ramp-up of Model 3 in Shanghai and Model Y in Fremont, production will likely outpace deliveries this year. Both solar and storage deployments will be up at least 50% in 2020.

Zacks Rank & Stocks to Consider

Tesla currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Auto-Tires-Trucks sector include Gentex Corporation (GNTX - Free Report) , Blue Bird Corporation (BLBD - Free Report) and SPX Corporation (SPXC - Free Report) , each carrying a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Gentex Corporation has an estimated earnings growth rate of 7.32% for 2020. The company’s shares have appreciated 40.6% in a year’s time.

Blue Bird has a projected earnings growth rate of 25.47% for the ongoing year. Its shares have gained 2.4% over the past year.

SPX has an expected earnings growth rate of 8.09% for the current year. The stock has rallied 73.4% in the past year.

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