This Valentine’s Day, QuantumScape (NYSE:QS) stock investors may receive a share-boosting gift. Indeed, the electric vehicle (EV) battery innovator is scheduled to report fourth-quarter earnings on Feb.14 after market close. A conference call with several company leaders, including CEO Jagdeep Singh and Chief Financial Officer Kevin Hettrich, will then follow the results.
QS stock has performed well recently, battling volatility but remaining primarily in the green. If the company reports positive growth for Q4 2023 and the fiscal year, this growth for shares could continue. Still, the stock has fallen for the past six months, causing Wall Street to turn bearish on QS for now.
Will QuantumScape exceed expectations and prove to investors that it shouldn’t be counted out? Let’s dive deeper into what investors can expect as the company prepares its next key update.
What’s Happening With QS Stock?
It’s not hard to see why the momentum behind QS stock has been positive over the past month. In the first week of January, Volkswagen (OTCMKTS:VWAGY) subsidiary PowerCo reported positive results for the first endurance test of QuantumScape’s solid-state cell. As InvestorPlace‘s Eddie Pan reports, the cell performed better-than-expected by completing 1,000 charging cycles with more than 95% capacity remaining. Investors had been waiting to see progress from the company and QuantumScape did not disappoint.
Shortly thereafter, the battery firm spurred further hype by releasing a video on its FlexFrame battery cell and its benefits. QuantumScape had been slow to provide updates of actual progress in the past, but 2024 is off to a good start on that front.
Even with this recent progress, though, Wall Street isn’t too optimistic about QuantumScape’s Q4 earnings. For example, the EPS consensus forecast is for a loss of 19 cents per share. That’s a slight improvement over its loss of 25 cents per share the same time last year, but it’s still a negative prediction. However, there is a silver lining: If QuantumScape reports earnings any better than that loss, it should boost QS stock and help shares continue to rise.
Is QuantumScape Undervalued?
While shares have certainly fallen over the past year, some still argue that QuantumScape is an undervalued company with growth potential. As InvestorPlace contributor Faisal Humayun recently reported:
“QS stock is high-risk, but some exposure can be considered for potential multibagger returns. The stock has been sideways in the last 12 months, but considering recent business developments, expect a breakout on the upside.”
The upcoming QuantumScape earnings will tell a lot about the company’s prospects for 2024. Until the Feb. 14 call, though, momentum will likely be positive as anticipation builds.
On the date of publication, Samuel O’Brient 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.
