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Tesla's (TSLA) Q1 Earnings & Revenues Beat Estimates, Up Y/Y
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Tesla, Inc. (TSLA - Free Report) reported earnings per share of $1.24 in first-quarter 2020, as against the Zacks Consensus Estimate of a loss of 22 cents. This outperformance stemmed from higher-than-anticipated automotive revenues, which came in at $5.13 billion, beating the consensus mark of $4.47 billion. The bottom line also compares favourably with the prior-year quarter’s loss of $2.90 per share.
During the reported quarter, net income attributable to common shareholders amounted to $16 million as against the net loss of $702 million recorded in the year-ago quarter.
Revenues increased to $5.98 billion from the $4.54 billion registered in first-quarter 2019. Also, the revenue figure surpassed the Zacks Consensus Estimate of $5.37 billion.
During the first quarter, Tesla reported delivery and production of 88,496 and 102,672 vehicles, reflecting a year-over-year increase of 33% and 40%, respectively.
Total automotive revenues, including that from automotive sales and leasing, climbed 38% year over year to $5.13 billion in the reported quarter.
Energy generation and storage revenues decreased from $325 million in first-quarter 2019 to $293 million in the first quarter. Services and other revenues were up 13.6% year over year to $560 million.
Tesla’s first-quarter 2020 automotive gross margin was 25.5%, shrinking 538 basis points (bps) from first-quarter 2019.
Tesla had cash and cash equivalents of $8.1 billion as of Mar 31, 2020, compared with $6.3 billion as of Dec 31, 2019. This increase was mainly driven by a $2.3-billion capital increase.
Net cash used by operating activities amounted to $440 million in first-quarter 2020 compared with $640 million of net cash used in first-quarter 2019. Capital expenditure increased to $455 million from the year-ago quarter’s $280 million, mainly due to investments in the Gigafactory Shanghai and Model Y preparations in Fremont.
Model 3 & S/X Update
In first-quarter 2020, Tesla reported Model 3/Y production and deliveries of 87,282 and 76,266 units, reflecting a year-over-year increase of 39% and 50%, respectively. During the March-end quarter, the production rate of Model 3/Y continued to improve.
The Model S/X production and deliveries totaled 15,390 and 12,230 vehicles, up 9% and 1% year over year, respectively.
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. However, amid the coronavirus-related setbacks, Tesla refrained from providing any profit or cash-flow forecast. The EV maker expects to ramp-up production of Model 3 in Shanghai and Model Y in Fremont through second-quarter 2020 and start deliveries from both locations by 2021. Furthermore, deliveries for Tesla Semi is anticipated to begin in 2021.
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Tesla's (TSLA) Q1 Earnings & Revenues Beat Estimates, Up Y/Y
Tesla, Inc. (TSLA - Free Report) reported earnings per share of $1.24 in first-quarter 2020, as against the Zacks Consensus Estimate of a loss of 22 cents. This outperformance stemmed from higher-than-anticipated automotive revenues, which came in at $5.13 billion, beating the consensus mark of $4.47 billion. The bottom line also compares favourably with the prior-year quarter’s loss of $2.90 per share.
During the reported quarter, net income attributable to common shareholders amounted to $16 million as against the net loss of $702 million recorded in the year-ago quarter.
Revenues increased to $5.98 billion from the $4.54 billion registered in first-quarter 2019. Also, the revenue figure surpassed the Zacks Consensus Estimate of $5.37 billion.
During the first quarter, Tesla reported delivery and production of 88,496 and 102,672 vehicles, reflecting a year-over-year increase of 33% and 40%, respectively.
Total automotive revenues, including that from automotive sales and leasing, climbed 38% year over year to $5.13 billion in the reported quarter.
Energy generation and storage revenues decreased from $325 million in first-quarter 2019 to $293 million in the first quarter. Services and other revenues were up 13.6% year over year to $560 million.
Tesla’s first-quarter 2020 automotive gross margin was 25.5%, shrinking 538 basis points (bps) from first-quarter 2019.
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 $8.1 billion as of Mar 31, 2020, compared with $6.3 billion as of Dec 31, 2019. This increase was mainly driven by a $2.3-billion capital increase.
Net cash used by operating activities amounted to $440 million in first-quarter 2020 compared with $640 million of net cash used in first-quarter 2019. Capital expenditure increased to $455 million from the year-ago quarter’s $280 million, mainly due to investments in the Gigafactory Shanghai and Model Y preparations in Fremont.
Model 3 & S/X Update
In first-quarter 2020, Tesla reported Model 3/Y production and deliveries of 87,282 and 76,266 units, reflecting a year-over-year increase of 39% and 50%, respectively. During the March-end quarter, the production rate of Model 3/Y continued to improve.
The Model S/X production and deliveries totaled 15,390 and 12,230 vehicles, up 9% and 1% year over year, respectively.
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. However, amid the coronavirus-related setbacks, Tesla refrained from providing any profit or cash-flow forecast. The EV maker expects to ramp-up production of Model 3 in Shanghai and Model Y in Fremont through second-quarter 2020 and start deliveries from both locations by 2021. Furthermore, deliveries for Tesla Semi is anticipated to begin in 2021.
Zacks Rank & Stocks to Consider
Tesla currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same sector are Veoneer, Inc. , Spartan Motors, Inc. and Modine Manufacturing Company (MOD - Free Report) , each carrying a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Today's Best Stocks from Zacks
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This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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