Nikola (NKLA) to Report Q3 Earnings: What’s in the Cards?
Nikola Company NKLA is scheduled to release its third-quarter 2023 results on November 2, before the market opens. The Zacks Consensus Estimate for the quarter’s to-be-reported loss per share and revenue are pegged at 15 cents and $15.52 million, respectively.
For the third quarter, the consensus estimate for NKLA’s loss per share narrowed by 4 cents in the past 90 days. Its final estimates indicate growth of 46.4% over the figure announced last year.
The Zacks Consensus Estimate for its quarterly revenue is calling for a year-over-year decline of 35.97%.
Over the trailing four quarters, NKLA beat the consensus estimate on all occasions, and the average surprise was 17.9%.
Highlights of the second quarter
In the second quarter of 2023, Nikola had an adjusted quarterly loss of 20 cents per share, below the Zacks Consensus Estimate of a loss of 24 cents. This compares to an adjusted loss of 25 cents per share reported a year ago. Nikola reported revenue of $15.36 million in the quarter, beating the Zacks Consensus Estimate of $15 million.
Our proven model does not conclusively predict Nikola’s earnings outperformance in Q3 2023, because it does not have the right mix of the two key components. A positive Earnings ESP with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not now the case.
ESP Earnings: NKLA has an Earnings ESP of 0.00%. This is because the most accurate estimate is in line with the Zacks Consensus Estimate. You can discover the best stocks to buy or sell before they are reported using the Earnings ESP filter.
Zacks Rank: It currently carries a Zacks Rank #2.
Things to note
In September, Nikola announced the expansion of its dealer network in Canada for sales of its Class 8 trucks. The vehicle manufacturer is eligible for incentives for the Medium-Duty and Heavy-Duty Zero Emission Vehicle Program, which offers Canadian businesses in all provinces, territories and municipalities up to C$200,000 in Incentives to purchase or lease a Nikola hydrogen fuel cell. Electric Truck and incentives of up to $150,000 CAD to purchase or lease a Nikola battery-powered electric truck.
It is also eligible for British Columbia’s Clean BC Go Electric rebate, which offers C$150,000 in incentives for the purchase or lease of both a Nikola hydrogen fuel cell and battery-electric truck. The expansion of the dealer network, coupled with incentives, will likely boost NKLA’s Q3 2023 results.
On the other hand, the car manufacturer has shut down its battery production operations of Romeo Power, Inc. It is preparing to establish a line of battery packs in Coolidge for its battery-powered electric trucks. During the second quarter of 2023, Nikola produced and delivered 33 and 45 trucks, respectively, down from 50 and 48 trucks in the corresponding quarter of 2022. With battery production operations halted, the decline in production trend is likely to continue in the quarter under review.
Whispers of profits to peers
Lucid Collection LCID is scheduled to report third-quarter earnings on November 7. The Zacks Consensus Estimate for the quarter’s earnings per share has been pegged at a loss of 27 cents per share. The company has an Earnings ESP of 0.00% and a Zacks Rank #2.
you can see The complete list of today’s Zacks #1 Rank stocks is here.
LCID missed earnings estimates in all four trailing quarters, and the average negative surprise was 12.08%.
Rivian RIVN is scheduled to report third-quarter earnings on November 7. The Zacks Consensus Estimate for the upcoming quarter’s earnings per share is pegged to a loss of $1.36 per share. The company has an Earnings ESP of -1.78% and a Zacks Rank #3.
RIVN beat earnings estimates in all four trailing quarters, and the average surprise was 15.22%.
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