Workhorse Stumbles: Q2 Losses Deepen As Sales Miss The Mark By A Mile

Workhorse Group, Inc. WKHS shares are trading lower on Tuesday.

The company reported a loss per share of $1.40, missing the analyst consensus loss of $1.23.

Workhorse reported sales of $0.84 million, missing the street view of $8.43 million. The company attributed the lower sales primarily to lower W4 CC vehicle sales, which was partially offset by an increase in other service revenue generated from operating Stables by Workhorse, Drones as a Service before the Aero divestiture, and other service revenue.

During the second quarter, the company received a purchase order for 141 W4 CC cab chassis vehicles from Kingsburg Truck Sales in California.

“We are also doing the R&D work we believe is necessary to expand our product offering by introducing the W56 208-inch wheelbase, 1200 cubic feet cargo capacity vehicle,” said Workhorse CEO Rick Dauch. “Production for this truck is expected to begin in the fourth quarter of this year, and we’ve already received our first order.”

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During the second quarter, the company reached a milestone with the award of a Sourcewell contract for procurement in the category of Class 4-8 chassis and cabs with related equipment, accessories, and services. 

Net loss was $26.3 million compared to $23.0 million in the same period last year.

As of June-end, the company had $5.3 million in cash and cash equivalents, accounts receivable of $0.8 million, net inventory of $46.5 million, and accounts payable of $10.5 million.

“We’ve made significant cost reductions, completed the Aero divestiture, and recently regained listing compliance with the NASDAQ minimum bid price requirement as a result of our reverse stock split,” said Workhorse CFO Bob Ginnan.

Price Action: WKHS shares are trading lower by 28.4% to $0.8730 at last check Tuesday.

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