Fisker (NYSE:FSR) stock plummeted 10% on Monday, Nov. 13 in after-hours trading after the company announced worse-than-expected earnings. The company posted revenues of $71.8 million, missing estimates of $109 million by 34.1%. Losses per share of 27 cents came in below the predicted loss of 19 cents.
Management struck a positive tone. In its announcement, Fisker detailed its global expansion into 10 countries and underscored plans to expand into two additional markets by the end of November 2023. The company saw “robust” demand in October, delivering more vehicles than in the entire third quarter.
“The third quarter was very significant for Fisker as we delivered 1,097 Fisker Ocean vehicles to customers across two continents, which represents the largest delivery volume for any US-based EV OEM in their first full quarter of deliveries,” commented CEO Henrik Fisker. “We are rapidly scaling our delivery infrastructure to support even higher volumes of deliveries of our class-leading product to our loyal customers.”
Fisker also raised $450 million during Q3, bringing its cash, cash equivalents, and restricted cash to $625 million, excluding $50 million in VAT receivables still anticipated. This capital infusion, along with the delivery optimisations and ongoing expansion, suggests a forward-looking momentum.
Still, InvestorPlace.com writers have warned about the struggling electric vehicle firm. Eddie Pan noted that its recent earnings report delay and the replacement of its chief accounting officer is bad news for FSR stock. Vandita Jadeja has similarly noted how Fisker is setting ambitious targets that seem extremely difficult to achieve.
Fisker’s third-quarter earnings reflect this reality. The company was only able to deliver 1,097 vehicles in the quarter, or 23% of the total cars produced in that period. And though the company delivered 1,200 units in October, its CEO acknowledged that the company is struggling with delivery logistics.
Shares have also trailed the market. The California-based company has lost 40% of its share value this year, compared to a 15% rise in the S&P 500.
The next earnings report for Fisker will be a crucial indicator of whether the company’s positive operational developments are translating into better sales.
Thomas Yeung produced this article using data from Thomson Reuters and unique generative AI prompts. These prompts help distill real-time quarterly earnings data and combine it with InvestorPlace.com’s best-in-class analysis. Our readers get a deep dive into financial results at lightning speed. These articles have been reviewed by a human editor prior to publication. To report any concerns or inaccuracies, please contact us at editor@investorplace.com.
