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.
Things to Note Ahead of Tesla's (TSLA) Q1 Earnings Release
Read MoreHide Full Article
Tesla (TSLA - Free Report) is slated to release first-quarter 2021 results on Apr 26, after the closing bell. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at 79 cents per share and $9.92 billion, respectively.
While Tesla managed to post profit for the sixth straight quarter in the October-December period, the bottom line missed the Zacks Consensus Estimate on lower-than-expected automotive gross profit. Nonetheless, the electric-vehicle (EV) pioneer beat estimates in three of the trailing four quarters and missed on the other, with the average surprise being 308.9%. This is depicted in the graph below:
The Zacks Consensus Estimate for Tesla’s first-quarter earnings per share has been revised upward by 4 cents in the past 30 days. The bottom line indicates a massive improvement from the year-ago earnings of 2 cents per share. The Zacks Consensus Estimate for fourth-quarter revenues indicates year-over-year growth of 65.7%.
Earnings Whispers
Our proven model predicts an earnings beat for Tesla for the to-be-reported quarter, as it has the right combination of the two key ingredients. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Tesla has an Earnings ESP of +12.06%. This is because the Most Accurate Estimate is pegged 9 cents higher than the Zacks Consensus Estimate.
Zacks Rank: It holds a Zacks Rank of 3, currently.
Factors to Consider
Amid rising popularity of green vehicles, Tesla delivered 184,800 units in first-quarter 2021, surpassing the Zacks Consensus Estimate of 178,350. Importantly, deliveries were up 109% from the comparable year-ago period and 2.3% sequentially. Increasing demand for Model 3 and Y, which form a major chunk of the automaker’s overall deliveries, can be attributed to Tesla's vehicle sales growth for the quarter. The Zacks Consensus Estimate for automotive revenues is pegged at $8,464 million, indicating year-over-year growth of 72.9%.
Solar and storage deployments are also expected to have witnessed significant growth, aided by Megapack and Powerwall products. The consensus mark for energy generation and storage revenues is pegged at $516 million, indicating an increase from the year-ago level of $293 million. The same for revenues from Automotive Leasing & Services and Others is pegged at $287 million and $668 million, indicating year-over-year growth of 20% and 19.3%, respectively.
All in all, robust Model 3/Y demand, ramped up output from the Shanghai Gigafactory, and solid performance of the energy and storage business are likely to have buoyed Tesla’s earnings in the to-be-reported quarter.
Other Stocks With Favorable Combination
Here are some other stocks in the auto space, which, according to our model, also have the right combination of elements to post an earnings beat in the quarter to be reported:
Polaris Inc. (PII - Free Report) has an Earnings ESP of +4.12% and carries a Zacks Rank #2 at present. The company is scheduled to announce first-quarter 2021 results on Apr 27.
Oshkosh Corporation (OSK - Free Report) has an Earnings ESP of +0.73% and carries a Zacks Rank #2 at present. The company is scheduled to announce second-quarter fiscal 2021 results on Apr 28.
Dana Incorporated (DAN - Free Report) has an Earnings ESP of +1.29% and carries a Zacks Rank #3 at present. The company is set to announce first-quarter 2021 results on Apr 28.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Image: Shutterstock
Things to Note Ahead of Tesla's (TSLA) Q1 Earnings Release
Tesla (TSLA - Free Report) is slated to release first-quarter 2021 results on Apr 26, after the closing bell. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at 79 cents per share and $9.92 billion, respectively.
While Tesla managed to post profit for the sixth straight quarter in the October-December period, the bottom line missed the Zacks Consensus Estimate on lower-than-expected automotive gross profit. Nonetheless, the electric-vehicle (EV) pioneer beat estimates in three of the trailing four quarters and missed on the other, with the average surprise being 308.9%. This is depicted in the graph below:
Tesla, Inc. Price and EPS Surprise
Tesla, Inc. price-eps-surprise | Tesla, Inc. Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for Tesla’s first-quarter earnings per share has been revised upward by 4 cents in the past 30 days. The bottom line indicates a massive improvement from the year-ago earnings of 2 cents per share. The Zacks Consensus Estimate for fourth-quarter revenues indicates year-over-year growth of 65.7%.
Earnings Whispers
Our proven model predicts an earnings beat for Tesla for the to-be-reported quarter, as it has the right combination of the two key ingredients. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Tesla has an Earnings ESP of +12.06%. This is because the Most Accurate Estimate is pegged 9 cents higher than the Zacks Consensus Estimate.
Zacks Rank: It holds a Zacks Rank of 3, currently.
Factors to Consider
Amid rising popularity of green vehicles, Tesla delivered 184,800 units in first-quarter 2021, surpassing the Zacks Consensus Estimate of 178,350. Importantly, deliveries were up 109% from the comparable year-ago period and 2.3% sequentially. Increasing demand for Model 3 and Y, which form a major chunk of the automaker’s overall deliveries, can be attributed to Tesla's vehicle sales growth for the quarter. The Zacks Consensus Estimate for automotive revenues is pegged at $8,464 million, indicating year-over-year growth of 72.9%.
Solar and storage deployments are also expected to have witnessed significant growth, aided by Megapack and Powerwall products. The consensus mark for energy generation and storage revenues is pegged at $516 million, indicating an increase from the year-ago level of $293 million. The same for revenues from Automotive Leasing & Services and Others is pegged at $287 million and $668 million, indicating year-over-year growth of 20% and 19.3%, respectively.
All in all, robust Model 3/Y demand, ramped up output from the Shanghai Gigafactory, and solid performance of the energy and storage business are likely to have buoyed Tesla’s earnings in the to-be-reported quarter.
Other Stocks With Favorable Combination
Here are some other stocks in the auto space, which, according to our model, also have the right combination of elements to post an earnings beat in the quarter to be reported:
Polaris Inc. (PII - Free Report) has an Earnings ESP of +4.12% and carries a Zacks Rank #2 at present. The company is scheduled to announce first-quarter 2021 results on Apr 27.
Oshkosh Corporation (OSK - Free Report) has an Earnings ESP of +0.73% and carries a Zacks Rank #2 at present. The company is scheduled to announce second-quarter fiscal 2021 results on Apr 28.
Dana Incorporated (DAN - Free Report) has an Earnings ESP of +1.29% and carries a Zacks Rank #3 at present. The company is set to announce first-quarter 2021 results on Apr 28.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
AccessZacks Top 10 Stocks for 2021 today >>