Shares of Rivian (NASDAQ:RIVN) are in the green today as the electric vehicle (EV) company prepares to report Q1 earnings after market close. May 9 marked Rivian’s initial public offering (IPO) lockup expiration for early investors and corporate insiders. Early investor Ford (NYSE:F) confirmed that it sold 8 million shares for $26.80 per share. In total, the sale amounted to $214 million. However, Ford is still the fourth-largest shareholder of F stock with a 10.5% stake, or 94 million shares.
Rivian has lost more than 70% of its value since the start of 2022. The company hit an all-time low of $21 this week as well. Investors are now hoping for a positive earnings report to turn around the stock price.
RIVN Stock Earnings: Watch for Revenue and EPS
For revenue, the consensus analyst estimate is for $130.5 million. The company reported revenue of $54 million during Q4. Meanwhile, the consensus earnings per share (EPS) estimate lies at a loss of $1.44. Rivian carries a trailing-12-month EPS of -$22.98.
At the end of 2021, Rivian had a healthy $18.4 billion of cash on hand. The company expects to burn through $8 billion of cash by the end of 2023. However, the large cash balance hints at no further equity or debt offerings, at least in the short term.
Watch for Guidance When Rivian Reports Earnings
For Q2, analysts expect revenue of $338.9 million and an EPS loss of $1.45. During its Q4 results, Rivian lowered its 2022 production guidance from 50,000 vehicles to 25,000 vehicles. As a result, any further lowered production guidance could send RIVN stock plummeting.
At the end of March, the EV company disclosed that it had produced 3,568 vehicles. As of March 8, Rivian had 83,000 preorders for its R1T and R1S models, as well as a 100,000 electric delivery van (EDV) order from Amazon (NASDAQ:AMZN).
Investors will also be interested to hear how the company plans to deal with supply chain issues. The company stated in its Q4 shareholder letter that it expects these issues to “continue through at least 2022.”
EV competitor Lucid (NASDAQ:LCID) reported earnings last week and disclosed price hikes for its Air models. The company also maintained its 2022 production guidance of between 12,000 to 14,000 vehicles. Still, CFO Sherry House warned that “any extended disruptions could result in an impact to our production forecast.”
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.