QS Stock Powers Higher Ahead of QuantumScape Earnings

  • QuantumScape (QS) will report its first-quarter earnings after the market close.
  • Analysts are expecting revenue of zero dollars and an adjusted EPS loss of 19 cents.
  • QS stock is up by almost 35% year-to-date.
QS stock - QS Stock Powers Higher Ahead of QuantumScape Earnings

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QuantumScape (NYSE:QS) is slated to report its first-quarter earnings after the bell, with shares of QS stock currently up by about 0.5%. The company, which promises to create a “forever battery,” is up 35% year-to-date.

CEO Jagdeep Singh previously forecasted that QuantumScape’s solid-state battery (SSB) would be released “by roughly the middle of the decade.” Today, lithium-ion batteries are commonly used in electric vehicles (EVs) and other applications. However, these batteries carry safety hazards due to the flammable liquids inside them. The argument for SSBs is that they are safer due to a lack of flammable liquids and are more efficient than lithium-ion batteries.

Still, QS stock is viewed as risky due to its lack of sales and a product. Let’s take a look at what analysts are forecasting for QuantumScape’s earnings later today.

QS Stock: QuantumScape to Report Earnings After the Bell

No product means no revenue. Analysts are forecasting Q1 revenue of zero dollars and the same for year-over-year (YOY). Meanwhile, analysts also expect a net loss of $102 million, equating to an adjusted EPS loss of 19 cents compared to a loss of 21 cents a year ago. GAAP EPS is expected to be a loss of 22 cents, down from a loss of 21 cents YOY.

Guidance for the next quarter doesn’t differ much from expectations for the current quarter. Revenue is again expected to be zero dollars, while net loss is expected to shrink to $96 million, resulting in an adjusted EPS loss of 18 cents.

The big question remains: When will QuantumScape report revenue? Analysts have forecasted $3 million in revenue for each quarter of 2024, resulting in a yearly revenue of $12 million. Revenue for 2023 is still expected to be zero. For 2025, revenue is expected to tally at $54 million.

InvestorPlace contributor David Moadel recently highlighted QS as a stock to keep on your watchlist. He pointed out a quote from EV expert Sandy Munro:

“When these batteries are in production, there will be no comparison between the current technology or anything petroleum based—[solid state] is the kiss of death for gasoline and diesel.”

Meanwhile, the global SSB market is expected to grow to $21.612 billion by 2029, compared to $1.174 billion in 2022. Only time will tell if this estimate will pan out and if QuantumScape will be able to emerge as a market leader.

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.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

Article printed from InvestorPlace Media, https://investorplace.com/2023/04/qs-stock-powers-higher-ahead-of-quantumscape-earnings/.

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