Electric vehicle start-up, Nikola Corporation (NKLA), is gearing up to report its fourth-quarter 2023 results on Feb 22, ahead of the market opening. Analysts are speculating a loss per share of 16 cents and revenues of $14.52 million, according to the Zacks Consensus Estimate.
Over the past 60 days, the consensus estimate for NKLA’s loss per share has widened by 2 cents. Analysts anticipate a 56.8% growth in the bottom-line estimates compared to the same period last year. The Zacks Consensus Estimate for its quarterly revenues suggests a significant year-over-year increase of 121.3%.
NKLA has outperformed earnings estimates in three of the last four quarters, with an average negative surprise of 14.16%.
Unpacking Q3 Highlights
In the third quarter of 2023, Nikola reported an adjusted quarterly loss of 33 cents per share, wider than the Zacks Consensus Estimate of a loss of 17 cents. This compares to an adjusted loss of 54 cents per share reported a year ago, signaling a mixed bag for the company.
The company also posted negative revenues of $1.73 million in the quarter, falling short of the Zacks Consensus Estimate of $23 million.
Earnings Whispers
Alternatively, Zacks’ proven model does not decisively predict an earnings beat for Nikola this time around, due to a lack of the right combination of key ingredients. The absence of a positive Earnings ESP combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) does not bode well for the company in the upcoming earnings report.
The company currently carries a Zacks Rank #3 and has an Earnings ESP of 0.00%, stemming from the Most Accurate Estimate aligning with the Zacks Consensus Estimate.
Key Factors at Play
In September 2023, Nikola announced the expansion of its dealer network into Canada for its Class 8 truck sales. The vehicle manufacturer is set to benefit from the Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles Program in Canada, potentially boosting its fourth-quarter 2023 results.
Additionally, the completion of Phase 2 assembly expansion at the Coolidge manufacturing facility is expected to elevate the company’s production capacity, leading to a possible surge in truck manufacturing.
However, the company has faced challenges in its battery production operations, which is likely to impact its losses and production trends in the upcoming earnings release.
Comparative Analysis
Other notable players in the electric vehicle space such as Lucid Group, Rivian Automotive, and Fisker Inc. are scheduled to report their fourth-quarter earnings, providing investors with insights and comparison points in a rapidly growing industry.
Shares in Lucid Group missed earnings estimates in each of the trailing four quarters, Rivian Automotive surpassed earnings estimates in each of the last four quarters, and Fisker Inc. mixed in its performance, beating estimates in one of the trailing four quarters and missing in three.
Keep an eye on the Zacks Earnings Calendar for upcoming announcements and pivotal industry developments.
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The opinions and analysis expressed are the author’s and do not necessarily reflect Nasdaq, Inc.’s views.
