Nikola (NKLA) to Report Q3 Earnings:
What's in the Cards?
Mentioned: LCID NKLA RIVN
Nikola Corporation NKLA is slated to release third-quarter 2023 results on Nov 2, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s loss per share and revenues is pegged at 15 cents and $15.52 million, respectively.For the third quarter, the consensus estimate for NKLA’s loss per share has narrowed by 4 cents in the past 90 days. Its bottom-line estimates imply growth of 46.4% from the year-ago reported number.The Zacks Consensus Estimate for its quarterly revenues suggests a year-over-year decline of 35.97%.Over the trailing four quarters, NKLA surpassed the consensus estimate on all occasions, the average surprise being 17.9%.
Q2 Highlights
In second-quarter 2023, Nikola incurred an adjusted quarterly loss of 20 cents per share, narrower than 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 posted revenues of $15.36 million in the quarter, outpacing the Zacks Consensus Estimate of $15 million.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Nikola for third-quarter 2023, as it does not have the right combination of the two key ingredients. A positive Earnings ESP combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.Earnings ESP: 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 uncover the best stocks to buy or sell before they’re reported with our 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 into Canada for its Class 8 truck sales. The vehicle manufacturer is eligible for the Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles Program, which offers Canadian organizations in all provinces, territories and municipalities up to CAD200,000 in incentives toward the purchase or lease of the Nikola hydrogen fuel cell electric truck and up to CAD150,000 in incentives toward the purchase or lease of the Nikola battery-electric truck.It is also eligible for the Clean BC Go Electric Rebates in the province of British Columbia, which offers CAD150,000 in incentives toward the purchase or lease of both the Nikola hydrogen fuel cell and battery-electric truck. Expansion of the dealer network, along with incentives, is likely to have bolstered NKLA’s third-quarter 2023 results.On the flip side, the vehicle manufacturer closed the battery production operations of Romeo Power, Inc. and is preparing to establish a battery pack line in Coolidge for its battery-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 the halt in battery production operations, the decline in production trend is likely to have persisted in the quarter under review.
Earnings Whispers for Peers
Lucid Group LCID is scheduled to post third-quarter earnings on Nov 7. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share is pinned 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 here.LCID missed earnings estimates in all of the trailing four quarters, the average negative surprise being 12.08%.Rivian RIVN is scheduled to post third-quarter earnings on Nov 7. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share is pegged at a loss of $1.36 per share. The company has an Earnings ESP of -1.78% and a Zacks Rank #3.RIVN surpassed earnings estimates in all of the trailing four quarters, the average surprise being 15.22%.Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
