Shares of Rivian (NASDAQ:RIVN) stock closed down more than 10% today, momentarily reaching a new 52-week low of $42.28 during intraday trading.
After a blockbuster initial public offering (IPO) last year, RIVN stock has lost more than 65% of its market capitalization. Now, shareholders are hoping that Rivian stock will experience a turnaround when the company reports earnings on March 10.
Here are the three things investors should watch with Rivian moving forward.
Rivian Stock: Watch for Revenue, EPS, Production
When it comes to quarterly reports, revenue is one of the most important statistics to watch. That’s because it ultimately reflects a company’s growth capability. For the fourth quarter, analysts expect Rivian to post revenue of $60.03 million; the high end of the estimates falls at $77.4 million while the low end falls at $38 million.
Rivian’s revenue will be primarily driven by the electric vehicle (EV) maker satisfying preorders for its R1T and R1S models. Currently, the company has three vehicles certified for sale in the United States: the R1T, the R1S and an electric delivery van (EDV). In 2021, Rivian produced 1,015 EVs and delivered 920. Nonetheless, that production figure fell short of its internal estimate of 1,200 vehicles. As of Dec. 15, the company had some 71,000 preorders for its R1 models.
In terms of earnings per share (EPS), analysts are expecting -$1.87 as well. The highest EPS estimate falls at -$1.10 while the lowest EPS estimate falls at -$4.28. Although EPS will remain negative, that isn’t surprising. Why? Rivian is spending heavily, ramping up its facility and production expenses.
To that end, Rivian stock investors should also watch out for updates concerning the company’s new $5 billion production facility in Georgia. The facility is expected to produce up to 400,000 vehicles per year at full capacity. Construction is slated to begin this summer.
What’s Next for RIVN?
Moving forward, RIVN stock investors should keep an eye on guidance as well, most importantly the production goal for this year. Investors are rightly concerned that supply-chain issues may hamper capacity. This is partly due to EV competitor Lucid (NASDAQ:LCID) recently lowering its estimated 2022 production estimate. Lucid attributed the lowered estimate to “extraordinary supply chain and logistics challenges.”
In terms of revenue guidance in the quarter ahead, analysts expect $323.8 million for Q1. Rivian did not disclose revenue guidance back when it reported Q3 earnings. That suggests the company may do the same for Q4.
On the date of publication, Eddie Pan did not hold (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.
