Rivian Automotive (RIVN) reported a quarterly deficit of $0.41 per share compared to the Zacks Consensus Estimate predicting a shortfall of $0.80. In comparison, they had a deficit of $1.19 per share during the same period last year. Adjustments have been made for one-time events.
The current quarterly report shows an earning surprise of 48.75%. Last quarter, it was anticipated that this vehicle and passenger car producer would record a loss of $0.66 per share; however, they only reported a loss of $0.52, resulting in a positive surprise of 21.21%.
In the past four quarters, the company has exceeded the average earnings per share forecasts set by analysts on two occasions.
Rivian Automotive, part of the Zacks Automotive - Domestic sector, reported revenues of $1.24 billion for the quarter ending March 2025, exceeding the Zacks Consensus Estimate by 21.34%. In comparison, their revenue was $1.2 billion during the same period last year. Over the past four quarters, this marks the second time they have exceeded the expected revenue figures.
The potential for the stock’s short-term price changes following the recent data release and projected future profits largely hinges on what insights the company’s leadership provides during the earnings discussion.
Rivian Automotive stocks have gained approximately 1.9% this year compared to the S&P 500’s decrease of -3.9%.
What’s Ahead for Rivian Automotive?
As Rivian Automotive continues to surpass market expectations this year, investors are left wondering about the future trajectory of the stock.
The crucial query doesn’t come with straightforward solutions; however, an effective approach for investors to tackle this issue is by examining the company’s earnings forecast. This encompasses not just the present collective projections of earnings expected over the next quarter or quarters, but also the shifts in those predictions recently observed.
Empirical studies indicate a significant connection between short-term fluctuations in stocks and changes in earnings forecasts. Traders have the option to monitor these adjustments independently or utilize a well-established ranking system such as the Zacks Rank, known for effectively leveraging shifts in earnings estimates.
Before the earnings announcement, the revision trends for estimates related to Rivian Automotive were varied. Despite these fluctuations, once the firm released its latest financials, the current state suggests maintaining a Zacks Rank #3 (Hold). This indicates an expectation that the share performance will likely match broader market movements soon. For insights into all today’s Zacks #1 Rank (Strong Buy) equities, you may refer to the comprehensive list available now.
We'll be watching closely to observe how projections for the upcoming quarters and this fiscal year evolve over the next few days. Presently, analysts anticipate an earnings per share of -$0.73 with revenues reaching $1.43 billion for the approaching quarter, along with an expected EPS of -$2.87 accompanied by projected sales of $5.41 billion for the ongoing fiscal period.
Investors ought to keep in mind that the overall prospects for the sector can significantly affect how well a stock performs too. Regarding the Zacks Industry Rank, the Automotive - Domestic category finds itself within the lowest decile among over 250 Zacks industries. According to our analysis, those sectors ranked in the upper half of all Zacks industries tend to surpass their lower-tier counterparts with returns exceeding a ratio of two-to-one.
VinFast Auto Ltd. (VFS), which operates within the same sector, hasn't released its figures for the quarter ending in March 2025 just yet.
The firm is anticipated to announce a quarterly loss of $0.26 per share in its forthcoming earnings release, showing no variance from the same period last year. Over the past thirty days, the consensus EPS forecast for this quarter has been adjusted downward by 25%, reaching its present value.
It is anticipated that VinFast Auto Ltd.'s revenue will reach $508.94 million, marking an increase of 68.2% compared to the same period last year.
The article was initially published on Zacks Investment Research (romero.my.id).
Posting Komentar
Posting Komentar