Rivian Automotive Inc. is slated to report first-quarter earnings after the bell Wednesday, with the EV maker battling a steep decline of its shares and fears of continued operational snags.
inventory was below renewed strain this week amid reviews that, after the post-IPO lockup interval had handed, Ford Motor Co.
and others had been promptly promoting a few of their Rivian shares.
The reviews that main shareholders didn’t hesitate to promote inventory after the lockup expiration and simply days earlier than the corporate’s first-quarter outcomes “actually sends the flawed sign to buyers,” Garrett Nelson with CFRA instructed MarketWatch.
Questions round these gross sales “might actually overshadow the earnings launch,” Nelson mentioned.
Rivian dropped practically 21% on Monday, poised to succeed in a report low and its largest one-day % lower. Monday’s decline prolonged Rivian’s losses to a 3rd day and 33%.
Rivian has scheduled a convention name with analysts at 5 p.m. Jap to debate outcomes. The decision shall be webcast.
Right here’s what to anticipate:
Earnings: FactSet consensus requires Rivian to report an adjusted per-share lack of $1.41 for the quarter. That might evaluate with an adjusted loss of $2.43 within the fourth quarter.
Income: The analysts polled by FactSet are calling for gross sales of $133 million for Rivian within the quarter, which might evaluate with $55 million within the fourth quarter and a smattering of gross sales within the third quarter.
Inventory value: Rivian shares have misplaced about 78% this 12 months, in contrast with losses of round 16% for the S&P 500 index.
The inventory is buying and selling round $23 a bit, off about 70% from its IPO value of $78 a share.
What else to count on: Rivian has guided for the manufacturing of 25,000 automobiles in 2022, reporting in April that it made 2,553 automobiles at its plant in Regular, Sick., and delivered 1,227 automobiles within the first quarter.
The numbers implied progress in the previous few weeks of March, and made buyers extra assured Rivian might get to its steerage. and that maybe the worst of the manufacturing snags are behind it.
One space of deal with Wednesday would be the manufacturing outlook and progress with the manufacturing ramp, Goldman Sachs analysts mentioned.
Rivian “has made made strides” within the first quarter and it has to make “additional enhancements” this 12 months to hit the steerage, the Goldman analysts mentioned, however in the end the corporate is predicted to reiterate the 2022 manufacturing steerage.
So far as promoting vehicles, Rivian should battle “ongoing logistics challenges” impacting the auto trade extra broadly, along with the truth that the corporate can also be ramping its personal distribution community, the analysts mentioned.
A hiccup that Rivian undoubtedly left behind was uncertainty round its second plant in Georgia, which had confronted staunch native and state opposition. Rivian got $1.5 billion in incentives to build the plant, straddling two counties east of Atlanta.