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Rivian (NASDAQ:RIVN) fell over 3.5% on Monday, ahead of its third-quarter earnings results on November 7th, after the closing bell, as the demand outlook for electric vehicles remains clouded on account of macroeconomic pressures.
The EV maker is expected to post an EPS of -$1.32 (+15.9% Y/Y) on revenue of $1.31B (+144.4% Y/Y).
Last month, the California-based company reported its preliminary sales for the third quarter, producing 16,304 vehicles during Q3 and delivering 15,564 vehicles, beating estimates. However, shares reacted quite the opposite as the full-year guidance implied fewer deliveries in Q3 and Q4 than anticipated.
However, soon after, the company shares plunged even further after Rivian announced a $1.5B convertible note offering, which raised concerns about the company’s financial health and the rate of its cash burn.
Eyeing the upcoming quarterly results, SA Contributor Noah Cox said, “The forthcoming detailed Q3 financials will be crucial in assessing Rivian’s current health and prospects, and management should take the opportunity to explore all options, including the exploration of a sale”.
Cox added that given Rivian’s plans to spend over $5B on a factory complex in Georgia and a burn of over $1B a quarter means that they almost certainly have to tap the markets for more cash beyond their recent convertible bond sale.
Meanwhile, Rivian was recently upgraded to Overweight from Neutral by Cantor Fitzgerald which expected annual deliveries of about 54K vehicles and saw its exclusivity agreement with e-commerce giant Amazon as an advantage.
In terms of guidance, Rivian is not expected to be EBITDA-positive until the back half of 2024 at the earliest. Shares of the company fell 10% after its last earnings report.
Over the last year, RIVN has beaten EPS estimates 75% of the time and has beaten revenue estimates 25% of the time.
Over the last three months, EPS estimates have seen six upward revisions and seven downward. Revenue estimates have seen 12 upward revisions and three downward.
