After a blockbuster initial public offering (IPO), fans of electric vehicle (EV) stocks are anxiously awaiting Rivian Automotive’s (NASDAQ:RIVN) Q3 earnings report today. The EV company has had a great week in the press, winning the 2022 MotorTrend Truck of the Year award and the Edmunds Editors’ Choice award. Now, all eyes are on RIVN stock earnings as the company is set to report after market close today.
In recent Rivian news, sources told the Associated Press that Rivian has plans to build a $5 billion electric truck factory in Georgia. The factory is projected to initially employ 7,500 employees, which could potentially grow to as many as 10,000 employees. The factory will be the largest industrial factory in Georgia’s history, surpassing Kia’s 4,400 employee factory. Rivian is likely to take advantage of Georgia’s “mega project tax credit” that applies to companies that hire more than 1,800 people or invest at least $450 million. Therefore, the EV company could potentially be eligible for $118 million in state tax credits.
With earnings less than five hours away, investors will want to know analyst estimates on key financial metrics. Here’s what to watch when it comes to RIVN stock earnings today.
RIVN Stock Earnings: What to Watch Today
- Eight analysts expect an average revenue figure of $970,000 when Rivian reports earnings. The lowest estimate lies at $700,000, while the highest estimate is $1.25 million.
- Investors will be happy to see Rivian report a positive revenue figure after the EV company reported $0 in revenue based on Q2 trailing-12-month (TTM) numbers.
- Additionally, eight analysts expect average earnings per share (EPS) of -$6.11. The lowest estimate falls at -$12.19, while the highest estimate falls at -85 cents. This is a large range, so it seems analysts are divided across the board. However, they are unanimous in expecting a loss for the quarter. Indeed, profitability remains a key issue for Rivian.
- On the other hand, 10 analysts have an average price target of $136.20 for RIVN stock. The lowest price target tallies in at $94, while the highest is $170. Analysts seem to be bullish on RIVN price targets.
- Furthermore, eight analysts expect average Q4 revenue guidance to be $69.38 million, which is a massive increase of 7,053% from average Q3 estimates. This is based on the fact that analysts expect deliveries to increase dramatically during Q4.
- Morgan Stanley analyst Adam Jonas has a very bullish stance on Rivian. He quipped that, “Rivian’s compelling product, strong management, and deterministic access to capital are underpinned by a strategic relationship with AMZN to decarbonize the final mile. We see it as ‘the one’ that can challenge Tesla.” Jonas has a $147 price target on RIVN stock, which represents an upside of 33% from current prices.
- This will be Rivian’s first earnings report since its IPO on Nov. 10.
On the date of publication, Eddie Pan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.