Electric vehicle manufacturer Rivian (NASDAQ:RIVN) will be reporting results tomorrow after market hours. Here’s what to expect.
Rivian missed analysts’ revenue expectations by 10.5% last quarter, reporting revenues of $874 million, down 34.6% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EBITDA and EPS estimates.
Is Rivian a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Rivian’s revenue to grow 8% year on year to $1.42 billion, slowing from the 98.3% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.65 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Rivian has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Rivian’s peers in the automobile manufacturing segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Ford delivered year-on-year revenue growth of 4.9%, beating analysts’ expectations by 5.5%, and General Motors reported revenues up 11%, topping estimates by 8%. Ford traded down 7.4% following the results while General Motors was also down 9.6%.
Read our full analysis of Ford’s results here and General Motors’s results here.
Stocks, especially growth stocks where cash flows further in the future are more important to the story, have had a good 2024. An economic soft landing (so far), the start of the Fed's rate cutting campaign, and the election of Donald Trump were positives for the market, and while some of the automobile manufacturing stocks have shown solid performance, the group has generally underperformed, with share prices down 4.4% on average over the last month. Rivian is up 8.2% during the same time and is heading into earnings with an average analyst price target of $14.82 (compared to the current share price of $14.37).
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