Rivian (RIVN) reported a narrower loss than anticipated and income beat for Q1, giving EV traders hope after disappointing outcomes from rivals Lucid and Fisker.
For the quarter, Rivian reported top-line income of $661 million versus estimates of $660.3 million, barely lower than the $663 million reported in This fall, however over 6 instances the $95 million reported in Q1 final 12 months. By way of revenue, the corporate reported an adjusted EPS lack of $1.25, beating estimates of a loss $1.56.
The corporate additionally reiterated its 50,000 unit annual manufacturing steering it offered throughout its fourth quarter earnings report. Rivian produced barely lower than 25,000 automobiles in 2021, because it suffered from element shortages and manufacturing points at its sole plant, in Regular, Illinois.
By way of outlook, the corporate nonetheless sees an adjusted EBITDA loss for the 12 months of $4.3 billion, which is a narrowing of the $5.2 billion EBITDA loss it had in 2022. Rivian studies it has $11.24 billion in money and money equivalents on the finish of the quarter, down from the $12 billion it had on the finish of This fall. However Rivian stated it anticipated to attain constructive gross revenue in 2024.
Final month Rivian disclosed it delivered 7,946 automobiles in Q1, topping avenue estimates of seven,752 in line with Bloomberg. Rivian additionally produced 9,395 automobiles, beating estimates of 8,752 automobiles.
Earlier in March, following the issuing of its manufacturing steering, a report urged Rivian had advised workers internally that it might make as many as 62,000 automobiles this 12 months, although a Rivian spokesperson advised Yahoo Finance that determine was “taken out of context” and 50,000 remained the official steering.
Wall Avenue had been on edge forward of Rivian’s earnings. Lengthy-time bull Alexander Potter of Piper Sandler, as an illustration, went bearish just a few weeks again in mid-April. Potter downgraded the inventory to Impartial and slashed his value goal to $15 from $63, writing that there’s concern over a money crunch. Potter predicted the corporate must elevate $4 billion in in some unspecified time in the future, with traders having to foot the invoice with new inventory or debt issuance.
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Potter nonetheless believes in Rivian’s long-term technique of vertically built-in manufacturing, however he sees the advantages coming years from now. The query: Can Rivian, and its traders, wait that lengthy?
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Pras Subramanian is a reporter for Yahoo Finance. You may observe him on Twitter and on Instagram.
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