Workhorse Stock Falls On Weak Q3, DoJ Probe

Workhorse Group Inc WKHS reported third-quarter FY21 sales of $(0.57) million, missing the analyst consensus of $1.18 million. The decrease in sales was primarily related to a $1.1 million refund liability associated with the recall of the company's C-1000 vehicles.
The cost of sales increased to $11.5 million from $2.8 million last year. Total operating expenses jumped 76.9% Y/Y to $13.4 million.
The company's operating loss widened to $(25.5) million in the quarter.
The company held $230.4 million in cash and equivalents as of September 30, 2021.
Net loss narrowed to $(81.1) million from $(84.13) million last year.
EPS of $(0.77) missed the analyst consensus of $(0.35).
Related Content: Why Workhorse Is Suspending Production Of Flagship Electric Delivery Truck
In a recent regulatory filing, the company disclosed that on November 5, 2021, the Department of Justice orally informed that it has a related open investigation covering the company.
The company noted it had not received any subpoena or other request for documents from the DOJ concerning this investigation and is cooperating with the SEC and DOJ investigations.
Price Action: WKHS shares are trading lower by 3.77% at $6.63 on the last check Tuesday.

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