All eyes are on Rivian (NASDAQ:RIVN) stock, as the electric vehicle (EV) company will report its second-quarter earnings tomorrow, Aug. 8, after the market close. As is usual with EV companies, Rivian has already disclosed second-quarter production of 13,992 vehicles and deliveries of 12,640 vehicles. During the first quarter, the company produced 9,395 vehicles and delivered 7,946 of them.
For the full year of 2023, Rivian has provided production guidance of 50,000 vehicles. Based on first-half production of 23,387 vehicles, Rivian will have to produce another 26,613 vehicles during the second half of the year in order to meet its guidance. Currently, it believes it is on track.
Last week, Cantor Fitzgerald issued a mixed rating on RIVN. The firm downgraded shares to “neutral” from “overweight.” However, it also raised its price target to $29 from $27 and increased its 2023 production estimate to 54,000 vehicles from 49,750 vehicles. Analyst Andres Sheppard had several reasons to back up the downgrade, such as an already high year-to-date return and competition from Tesla’s (NASDAQ:TSLA) upcoming Cybertruck and Ford’s (NYSE:F) F-150 Lightning. At the same time, Sheppard’s rating may be taken with a grain of salt due to his poor TipRank’s rating.
RIVN Stock: Rivian to Report Earnings Tomorrow
For the second quarter, Wall Street analysts have forecasted revenue of $1.002 billion. This represents quarter-over-quarter (QOQ) growth of 51.62% and year-over-year (YOY) growth of 175.33%. If the revenue estimate is met, that would mean Rivian has reported increasing QOQ revenue growth for the fourth consecutive quarter.
Meanwhile, analysts aren’t expecting Rivian to report profitability any time soon. For Q2, adjusted earnings per share (EPS) is forecasted to be a loss of 1.39 cents, while adjusted net income is forecasted to be a loss of $1.272 billion. These analysts forecast a positive adjusted EPS in 2028 and a positive GAAP EPS in 2030.
Just as important as current quarter earnings is guidance. For Q3, analysts have forecasted $1.249 billion in revenue, implying 132.95% YOY growth, and an adjusted EPS loss of $1.30. For the entire year of 2023, analysts expect revenue of $4.132 billion, up by 149.21% YOY, and an adjusted EPS loss of $5.30.
Finally, an increase of 2023 production guidance is sure to benefit shares. RIVN shareholders should expect an update on the status of the automotive supply chain and how it will affect production guidance.
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.
