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Will Chip Crunch, High Costs Dent Rivian (RIVN) Q4 Earnings?
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Rivian Automotive (RIVN - Free Report) is scheduled to report fourth-quarter 2021 results on Mar 10, after the closing bell. The Zacks Consensus Estimate for the quarter’s loss and revenues is pegged at $1.58 per share and $50 million, respectively. The consensus mark for Rivian’s fourth-quarter loss per share has remained stable over the past 60 days.
The electric vehicle (EV) start-up went public in November 2021. This will be the second time that the company will unveil quarterly results after making its Nasdaq debut. In the last reported quarter, Rivian incurred a loss per share of $7.68, narrower than the Zacks Consensus Estimate of a loss of $11.92. The firm registered revenues of a mere $1 million for third-quarter 2021.
Factors Shaping Q4 Results
In its last earnings call, Rivian had already warned that impediments to the supply chain coupled with challenges in hoisting production of complex batteries required to power the vehicles would hurt fourth-quarter production. The company stated concerns of trailing behind its goal to build 1,200 units for the year by a few hundred vehicles, dimming the production outlook for the to-be-reported quarter.
Additionally, RIVN — being in the nascent stage of development — has been burning cash. In the last reported quarter, Rivian’s research & development (R&D) costs doubled from the year-ago levels, while selling, general & administrative (SG&A) expenses increased nearly sixfold from the corresponding quarter of 2020. Massive operating costs for the fourth quarter stemming from advanced product-development activities are likely to have dented fourth-quarter margins. Also, high capex to support additional manufacturing capacity and infrastructure is likely to have clipped cash flows. This gets more glaring, especially when the company is not generating meaningful revenues.
To add to the woes, the firm’s COO resigned in December. The resignation came at a critical juncture as the company has been facing challenges in the production ramp-up of R1T and R1S EVs. During the fourth quarter, Rivian also pushed back the deliveries of its electric pickup truck and sports utility vehicle with big battery packs to 2023. These unfortunate updates are likely to have negatively impacted Rivian’s fourth-quarter performance.
Notwithstanding production snags, total reservations for its electric R1T pickup and R1S SUV increased to 71,000 as of Dec 15, 2021, rising 28% from 55,400 vehicles in November. Encouragingly, the company has already delivered 386 of the 652 vehicles that it built, including its pickup and SUV.
Nonetheless, the overall results of Rivian are likely to be weighed down by supply chain snarls, manufacturing inefficiencies, and high operating costs and capex requirements.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Rivian this time around. The 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, which is not the case here.
Earnings ESP: Rivian has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is on par with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Lordstown Motors incurred fourth-quarter 2021 adjusted loss of 42 cents a share, narrower than the Zacks Consensus Estimate of a loss of 81 cents. The bottom line, however, deteriorated from a loss of 37 cents per share posted in the comparable year-ago period. Operating expenses for the quarter under review came in at $84.6 million, shooting up 120% year over year. RIDE logged $30 million in capital expenditure.
Lordstown exited the quarter with a cash balance of $244 million. The company expects to produce and sell as many as 2,500 Endurance pickups in 2023. This year, it expects to sell 500 units. RIDE notified that despite the ongoing supply chain snarls, it targets to commence commercial production and sales of Endurance trucks in third-quarter 2022.
Lucid Group (LCID - Free Report) incurred fourth-quarter 2021 adjusted loss of 37 cents a share, wider than the Zacks Consensus Estimate of a loss of 26 cents but narrower than the prior quarter’s loss of 41 cents. For the quarter under discussion, the company registered revenues of around $26 million. Operating expenses totaled $360.6 million, up from 200.8 million in the year-ago quarter. LCID incurred $121 million in capital expenditure.
Lucid exited the quarter with a cash balance of $6.2 billion. The company delivered 125 Lucid Air cars in the fourth quarter. As of Feb 28, it had taken over 25,000 customer reservations, reflecting potential sales of more than $2.4 billion. The firm notified that its Arizona manufacturing facility is on track and announced plans to establish a new manufacturing facility in Saudi Arabia. LCID envisions 2022 production of Lucid Air in the band of 12,000-14,000 units.
Canoo (GOEV - Free Report) incurred fourth-quarter 2021 adjusted loss of 61 cents a share, wider than the Zacks Consensus Estimate of 51 cents but narrower than the prior-year loss of 66 cents. For the quarter under review, the firm incurred operating expenses (R&D and SG&A) of $138.8 million, up from $125.7 million in fourth-quarter 2020. Net cash used in operating activities summed $300.8 million for 2021 compared with $107.1 million in 2020.
As of Dec 31, Canoo had cash and cash equivalents of $224.7 million. The company also announced the opening of an advanced manufacturing facility in Bentonville. For first-quarter 2022, GOEV projects operating expenses in the $95-$115 million range. Capital expenditure is projected in the band of $60-$80 million.
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Will Chip Crunch, High Costs Dent Rivian (RIVN) Q4 Earnings?
Rivian Automotive (RIVN - Free Report) is scheduled to report fourth-quarter 2021 results on Mar 10, after the closing bell. The Zacks Consensus Estimate for the quarter’s loss and revenues is pegged at $1.58 per share and $50 million, respectively. The consensus mark for Rivian’s fourth-quarter loss per share has remained stable over the past 60 days.
The electric vehicle (EV) start-up went public in November 2021. This will be the second time that the company will unveil quarterly results after making its Nasdaq debut. In the last reported quarter, Rivian incurred a loss per share of $7.68, narrower than the Zacks Consensus Estimate of a loss of $11.92. The firm registered revenues of a mere $1 million for third-quarter 2021.
Factors Shaping Q4 Results
In its last earnings call, Rivian had already warned that impediments to the supply chain coupled with challenges in hoisting production of complex batteries required to power the vehicles would hurt fourth-quarter production. The company stated concerns of trailing behind its goal to build 1,200 units for the year by a few hundred vehicles, dimming the production outlook for the to-be-reported quarter.
Additionally, RIVN — being in the nascent stage of development — has been burning cash. In the last reported quarter, Rivian’s research & development (R&D) costs doubled from the year-ago levels, while selling, general & administrative (SG&A) expenses increased nearly sixfold from the corresponding quarter of 2020. Massive operating costs for the fourth quarter stemming from advanced product-development activities are likely to have dented fourth-quarter margins. Also, high capex to support additional manufacturing capacity and infrastructure is likely to have clipped cash flows. This gets more glaring, especially when the company is not generating meaningful revenues.
To add to the woes, the firm’s COO resigned in December. The resignation came at a critical juncture as the company has been facing challenges in the production ramp-up of R1T and R1S EVs. During the fourth quarter, Rivian also pushed back the deliveries of its electric pickup truck and sports utility vehicle with big battery packs to 2023. These unfortunate updates are likely to have negatively impacted Rivian’s fourth-quarter performance.
Notwithstanding production snags, total reservations for its electric R1T pickup and R1S SUV increased to 71,000 as of Dec 15, 2021, rising 28% from 55,400 vehicles in November. Encouragingly, the company has already delivered 386 of the 652 vehicles that it built, including its pickup and SUV.
Nonetheless, the overall results of Rivian are likely to be weighed down by supply chain snarls, manufacturing inefficiencies, and high operating costs and capex requirements.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Rivian this time around. The 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, which is not the case here.
Earnings ESP: Rivian has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is on par with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Rivian currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Peer Releases
Lordstown Motors incurred fourth-quarter 2021 adjusted loss of 42 cents a share, narrower than the Zacks Consensus Estimate of a loss of 81 cents. The bottom line, however, deteriorated from a loss of 37 cents per share posted in the comparable year-ago period. Operating expenses for the quarter under review came in at $84.6 million, shooting up 120% year over year. RIDE logged $30 million in capital expenditure.
Lordstown exited the quarter with a cash balance of $244 million. The company expects to produce and sell as many as 2,500 Endurance pickups in 2023. This year, it expects to sell 500 units. RIDE notified that despite the ongoing supply chain snarls, it targets to commence commercial production and sales of Endurance trucks in third-quarter 2022.
Lucid Group (LCID - Free Report) incurred fourth-quarter 2021 adjusted loss of 37 cents a share, wider than the Zacks Consensus Estimate of a loss of 26 cents but narrower than the prior quarter’s loss of 41 cents. For the quarter under discussion, the company registered revenues of around $26 million. Operating expenses totaled $360.6 million, up from 200.8 million in the year-ago quarter. LCID incurred $121 million in capital expenditure.
Lucid exited the quarter with a cash balance of $6.2 billion. The company delivered 125 Lucid Air cars in the fourth quarter. As of Feb 28, it had taken over 25,000 customer reservations, reflecting potential sales of more than $2.4 billion. The firm notified that its Arizona manufacturing facility is on track and announced plans to establish a new manufacturing facility in Saudi Arabia. LCID envisions 2022 production of Lucid Air in the band of 12,000-14,000 units.
Canoo (GOEV - Free Report) incurred fourth-quarter 2021 adjusted loss of 61 cents a share, wider than the Zacks Consensus Estimate of 51 cents but narrower than the prior-year loss of 66 cents. For the quarter under review, the firm incurred operating expenses (R&D and SG&A) of $138.8 million, up from $125.7 million in fourth-quarter 2020. Net cash used in operating activities summed $300.8 million for 2021 compared with $107.1 million in 2020.
As of Dec 31, Canoo had cash and cash equivalents of $224.7 million. The company also announced the opening of an advanced manufacturing facility in Bentonville. For first-quarter 2022, GOEV projects operating expenses in the $95-$115 million range. Capital expenditure is projected in the band of $60-$80 million.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.