Michael M. Santiago/Getty Images News
rivian (NASDAQ:RIVN) fell more than 3.5% on Monday, ahead of its third-quarter earnings results on Nov. 7, after the closing bell, as the outlook for electric vehicle demand remains clouded due to macroeconomic pressures.
The electric vehicle maker is expected to release a EPS -$1.32 (+15.9% year-on-year) on revenues of $1.31 billion (+144.4% year-on-year).
Last month, the California-based company reported its preliminary sales for the third quarter, producing 16,304 vehicles during the third quarter and delivering 15,564 vehicles, beating estimates. However, stocks reacted just the opposite, as full-year forecasts implied fewer deliveries in the third and fourth quarters than expected.
However, shortly after, the company’s shares plummeted further after Rivian announced a $1.5 billion convertible note offering, raising concerns about the company’s financial health and the pace of its burn. of cash.
Looking at the upcoming quarterly results, SA contributor Noah Cox said: “The upcoming detailed third quarter financial statements will be crucial in assessing Rivian’s current health and prospects, and management should take the opportunity to explore all options, including exploring a sale.”
Cox added that with Rivian’s plans to spend more than $5 billion on a manufacturing complex in Georgia and a burn of more than $1 billion a quarter, they will almost certainly have to tap the markets for more cash. beyond its recent sale of convertible bonds.
Meanwhile, Cantor Fitzgerald recently upgraded Rivian to Overweight from Neutral, which expected annual deliveries of around 54,000 vehicles and saw its exclusivity deal with e-commerce giant Amazon as an advantage.
In terms of guidance, Rivian is not expected to be EBITDA positive until the second half of 2024 at the earliest. The company’s shares fell 10% after its latest earnings report.
Over the last year, RIVN beat EPS estimates 75% of the time and beat revenue estimates 25% of the time.
In the last three months, EPS estimates have seen six upward revisions and seven downward revisions. Earnings estimates have seen 12 upward revisions and three downward revisions.
