Workhorse Group, Inc.
WKHS
is slated to release third-quarter 2020 results on Nov 9, before the opening bell. The Zacks Consensus Estimate for the quarter’s loss and revenues is pegged at 11 cents and $400,000, respectively. The electric vehicle (EV) maker incurred a loss of 12 cents in the last reported quarter amid high operating expenses. The Zacks Consensus Estimate for Workhorse’s third-quarter loss per share has remained stable over the past 60 days.
Factors at Play
Rising deliveries of C-Series vans is expected to have boosted Workhorse’s top line 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, along with strategic partnerships with firms including Lordstown Motors are likely to have strengthened the firm’s backlog. Nonetheless, high cost of goods sold due to elevated tooling expenses for C-Series production is anticipated to have dented gross profits. Also, the market leader, first mover and only U.S. pure play original equipment manufacturer 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.
Importantly, the red hot EV maker
Tesla
TSLA
delivered an earnings beat in the latest quarterly release. Meanwhile, electric-truck start up
Nikola
NKLA
is set to post quarterly numbers on Nov 9, after the closing bell. China-based EV manufacturer
NIO Inc.
NIO
is scheduled to unveil third-quarter results on Nov 17.
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