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Record-Breaking Delivery Count to Aid Tesla (TSLA) Q1 Earnings
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Tesla (TSLA - Free Report) is set to release first-quarter 2022 results tomorrow, after the closing bell. The electric vehicle (EV) manufacturer’s upcoming results will reflect the positive impact of rising Model 3/Y deliveries, which form a major chunk of the automaker’s overall deliveries.
In the last reported quarter, Tesla reported earnings of $2.54, which surpassed the Zacks Consensus Estimate of $2.11. A higher-than-expected automotive gross profit resulted in this outperformance. Precisely, automotive gross profit came in at $4,882 million, topping the consensus mark of $4,254 million. The bottom line also compared favorably with the year-ago earnings of 80 cents a share. Total revenues came in at $17,719 million, beating the consensus mark of $16,070 million. The top line also witnessed year-over-year growth of 65%.
Total automotive revenues of $15,339 topped the consensus mark of $13,728 million and surged 70% year over year. Production and delivery totaled 305,840 and 308,650 vehicles for fourth-quarter 2021, reflecting a year-over-year jump of 70% and 71%, respectively. The Model 3/Y registered production and deliveries of 292,731 and 296,884 vehicles, marking year-over-year growth of 79% and 84%, respectively. Meanwhile, production and delivery of the Model S/X plunged 19% and 38% on a year-over-year basis to 13,109 and 11,766 units, respectively.
Tesla had cash/cash equivalents and long-term debt and finance leases of $17,576 million and $5,245 million, respectively, as of Dec 31, 2021. Importantly, the firm generated free cash flow of $2,775 million during fourth-quarter 2021.
Record Deliveries & Price Hike Play Key Catalysts in Q1
The growing adoption of green cars amid heightening climate concerns is benefiting Tesla. With Model 3 being its flagship vehicle, Tesla has established itself as a leader in the EV segment. Currently, it is the best-selling sedan in the world. The soaring popularity of Model Y is also boosting Tesla’s prospects.
The EV king registered production and deliveries of 305,407 and 310,048 vehicles, respectively, in the March-end period, way higher than 180,338 units produced and 184,800 units delivered in the corresponding quarter of 2021. The delivery count marks a 67.7% increase on a yearly basis. Deliveries also inched up 0.5% from the fourth-quarter 2021 level. In fact, first-quarter 2022 marked the seventh consecutive quarter of record deliveries by the world's most valuable automaker. What’s more, the remarkable numbers were attained despite several challenges including escalating supply chain snafus and COVID-19 surge in China.
Defying the global chip crunch that the auto industry has been battling, TSLA was able to boost Model 3/Y production and deliveries. Model 3/Y production and deliveries totaled 291,189 and 295,324 units for first-quarter 2022, reflecting massive growth from 180,338 and 182,780 units delivered in the comparable year-ago period. Model 3/Y deliveries also surpassed the Zacks Consensus Estimate of 286,883 units.
Additionally, just in the span of the first 15 days of March 2022, Tesla raised the prices of many of its models twice. The first price hike saw the auto magnate charging $1,000 extra for all vehicles equipped with long-range battery packs. Prices of its U.S. Model Y SUVs and Model 3 Long Range sedans and some China-made Model 3 and Model Y vehicles were increased. But the second price hike was more glaring. It raised prices in the range of 5-10% throughout its entire lineup of vehicles in China and the United States amid inflationary pressure on raw materials and logistics, aggravated by the Russia-Ukraine war.
Price hikes and record-shattering deliveries are likely to have buoyed Tesla’s revenues in the to-be-reported quarter. The consensus mark for automotive revenues is pegged at $14,711 million, implying a whopping increase of 69% year over year.
Overall Earnings & Revenue Projections for Q1
Our proven model predicts an earnings beat for Tesla as it has the right combination of a positive Earnings ESP and a favorable Zacks Rank. The company has an Earnings ESP of +10.21% and Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is pegged at $2.16 per share, indicating a massive jump of 132.3% on a year-over-year basis. The Zacks Consensus Estimate of $17.29 million for sales indicates a 66.4% jump on a year-over-year basis.
Other Stocks With Favorable Combination
Here are some other players from the auto space, which, according to our model, also have the right combination of elements to post an earnings beat for the quarter to be reported:
Allison Transmission (ALSN - Free Report) has an Earnings ESP of +10.35% and a Zacks Rank #3. The stock is set to report first-quarter 2022 earnings on Apr 27.
The Zacks Consensus Estimate for Allison’s to-be-reported quarter’s earnings and revenues is pegged at $1.16 per share and $642 million, respectively. Encouragingly, ALSN surpassed earnings estimates in the last four quarters, with an average of 13.4%.
LKQ Corp (LKQ - Free Report) has an Earnings ESP of +0.37% and a Zacks Rank #3. The stock is set to report first-quarter 2022 earnings on Apr 28.
The Zacks Consensus Estimate for LKQ’s to-be-reported quarter’s earnings and revenues is pegged at 91 cents per share and $3.28 billion, respectively. Encouragingly, LKQ surpassed earnings estimates in the last four quarters, with an average of 33.9%.
Cummins, Inc. (CMI - Free Report) has an Earnings ESP of +0.09% and a Zacks Rank #3. The stock is set to report first-quarter 2022 earnings on May 3.
The Zacks Consensus Estimate for Cummins’ to-be-reported quarter’s earnings and revenues is pegged at $3.55 per share and $6.02 billion, respectively. Over the trailing four quarters, CMI surpassed earnings estimates twice for as many misses, with an average surprise of 0.5%.
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Record-Breaking Delivery Count to Aid Tesla (TSLA) Q1 Earnings
Tesla (TSLA - Free Report) is set to release first-quarter 2022 results tomorrow, after the closing bell. The electric vehicle (EV) manufacturer’s upcoming results will reflect the positive impact of rising Model 3/Y deliveries, which form a major chunk of the automaker’s overall deliveries.
(Also read: Tesla to Retain Earnings Beat Streak in Q1 Amid Chip Woes)
Q4 Highlights
In the last reported quarter, Tesla reported earnings of $2.54, which surpassed the Zacks Consensus Estimate of $2.11. A higher-than-expected automotive gross profit resulted in this outperformance. Precisely, automotive gross profit came in at $4,882 million, topping the consensus mark of $4,254 million. The bottom line also compared favorably with the year-ago earnings of 80 cents a share. Total revenues came in at $17,719 million, beating the consensus mark of $16,070 million. The top line also witnessed year-over-year growth of 65%.
Total automotive revenues of $15,339 topped the consensus mark of $13,728 million and surged 70% year over year. Production and delivery totaled 305,840 and 308,650 vehicles for fourth-quarter 2021, reflecting a year-over-year jump of 70% and 71%, respectively. The Model 3/Y registered production and deliveries of 292,731 and 296,884 vehicles, marking year-over-year growth of 79% and 84%, respectively. Meanwhile, production and delivery of the Model S/X plunged 19% and 38% on a year-over-year basis to 13,109 and 11,766 units, respectively.
Tesla had cash/cash equivalents and long-term debt and finance leases of $17,576 million and $5,245 million, respectively, as of Dec 31, 2021. Importantly, the firm generated free cash flow of $2,775 million during fourth-quarter 2021.
Record Deliveries & Price Hike Play Key Catalysts in Q1
The growing adoption of green cars amid heightening climate concerns is benefiting Tesla. With Model 3 being its flagship vehicle, Tesla has established itself as a leader in the EV segment. Currently, it is the best-selling sedan in the world. The soaring popularity of Model Y is also boosting Tesla’s prospects.
The EV king registered production and deliveries of 305,407 and 310,048 vehicles, respectively, in the March-end period, way higher than 180,338 units produced and 184,800 units delivered in the corresponding quarter of 2021. The delivery count marks a 67.7% increase on a yearly basis. Deliveries also inched up 0.5% from the fourth-quarter 2021 level. In fact, first-quarter 2022 marked the seventh consecutive quarter of record deliveries by the world's most valuable automaker. What’s more, the remarkable numbers were attained despite several challenges including escalating supply chain snafus and COVID-19 surge in China.
Defying the global chip crunch that the auto industry has been battling, TSLA was able to boost Model 3/Y production and deliveries. Model 3/Y production and deliveries totaled 291,189 and 295,324 units for first-quarter 2022, reflecting massive growth from 180,338 and 182,780 units delivered in the comparable year-ago period. Model 3/Y deliveries also surpassed the Zacks Consensus Estimate of 286,883 units.
Additionally, just in the span of the first 15 days of March 2022, Tesla raised the prices of many of its models twice. The first price hike saw the auto magnate charging $1,000 extra for all vehicles equipped with long-range battery packs. Prices of its U.S. Model Y SUVs and Model 3 Long Range sedans and some China-made Model 3 and Model Y vehicles were increased. But the second price hike was more glaring. It raised prices in the range of 5-10% throughout its entire lineup of vehicles in China and the United States amid inflationary pressure on raw materials and logistics, aggravated by the Russia-Ukraine war.
Price hikes and record-shattering deliveries are likely to have buoyed Tesla’s revenues in the to-be-reported quarter. The consensus mark for automotive revenues is pegged at $14,711 million, implying a whopping increase of 69% year over year.
Overall Earnings & Revenue Projections for Q1
Our proven model predicts an earnings beat for Tesla as it has the right combination of a positive Earnings ESP and a favorable Zacks Rank. The company has an Earnings ESP of +10.21% and Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is pegged at $2.16 per share, indicating a massive jump of 132.3% on a year-over-year basis. The Zacks Consensus Estimate of $17.29 million for sales indicates a 66.4% jump on a year-over-year basis.
Other Stocks With Favorable Combination
Here are some other players from the auto space, which, according to our model, also have the right combination of elements to post an earnings beat for the quarter to be reported:
Allison Transmission (ALSN - Free Report) has an Earnings ESP of +10.35% and a Zacks Rank #3. The stock is set to report first-quarter 2022 earnings on Apr 27.
The Zacks Consensus Estimate for Allison’s to-be-reported quarter’s earnings and revenues is pegged at $1.16 per share and $642 million, respectively. Encouragingly, ALSN surpassed earnings estimates in the last four quarters, with an average of 13.4%.
LKQ Corp (LKQ - Free Report) has an Earnings ESP of +0.37% and a Zacks Rank #3. The stock is set to report first-quarter 2022 earnings on Apr 28.
The Zacks Consensus Estimate for LKQ’s to-be-reported quarter’s earnings and revenues is pegged at 91 cents per share and $3.28 billion, respectively. Encouragingly, LKQ surpassed earnings estimates in the last four quarters, with an average of 33.9%.
Cummins, Inc. (CMI - Free Report) has an Earnings ESP of +0.09% and a Zacks Rank #3. The stock is set to report first-quarter 2022 earnings on May 3.
The Zacks Consensus Estimate for Cummins’ to-be-reported quarter’s earnings and revenues is pegged at $3.55 per share and $6.02 billion, respectively. Over the trailing four quarters, CMI surpassed earnings estimates twice for as many misses, with an average surprise of 0.5%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.