Workhorse Group, Inc. WKHS is slated to release second-quarter 2020 results on Aug 10, before the opening bell. The Zacks Consensus Estimate for the quarter’s loss and revenues is pegged at 12 cents and $300,000, respectively. The electric vehicle (EV) maker posted better-than-expected results in the last reported quarter.
The Zacks Consensus Estimate for Workhorse’s second-quarter loss per share has widened by a penny over the past 60 days. The year-ago loss was 10 cents per share. Sales of $6,000 were recorded in the corresponding quarter of 2019.
Factors at Play
Workhorse’s new C-Series delivery vans received a federal approval for sales in the United States during the to-be-reported quarter. These C-series vans are designed for last mile service for delivering packages or cargo to final destinations. Increasing demand for green vehicles amid favorable government policies and climate change concerns bodes well for the firm’s revenues. Nonetheless, high cost of goods sold due to elevated tooling costs for the C-Series production is anticipated to have dented gross profits. Also, the market leader, first mover and only U.S. pure play OEM in medium-duty electrification has been incurring elevated SG&A and R&D costs, which are expected to have ailed operating margins.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Workhorse this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: The company has an Earnings ESP of 0.00%.
Zacks Rank: It carries a Zacks Rank of 3 currently.
While the red hot EV maker Tesla TSLA delivered an earnings beat in the latest quarterly release, electric-truck start up Nikola NKLA posted wider-than-expected loss. Meanwhile, China-based EV manufacturer NIO Inc. NIO is set to unveil second-quarter numbers on Aug 11.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don’t buy now, you may kick yourself in 2021.
Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Zacks Investment Research