Electric vehicle company Rivian Automotive RIVN could provide an update on production and delivery guidance and share the impact the 2024 election outcome has on the company's future when third-quarter financial results are reported Thursday after market close.
Earnings Estimates: Analysts expect Rivian to report third-quarter revenue of $1.00 billion, according to data from Benzinga Pro.
The revenue forecast is below last year's third-quarter total of $1.34 and would be the company's lowest revenue total in six quarters.
Rivian has beaten analyst estimates for revenue in six straight quarters and seven of the past 10 quarters overall.
Analysts expect the company to report a loss of 92 cents per share, compared to a loss of $1.19 in last year's third quarter. The company has beaten analyst estimates for earnings per share in eight straight quarters.
What Analysts Are Saying: Softness in demand is a key area JPMorgan analyst Ryan Brinkman is watching in the company's third-quarter financial report and commentary.
The analyst has an Underweight rating on Rivian and recently lowered the price target from $14 to $12.
Brinkman's update came after Rivian lowered its annual production guidance to a range of 47,000 to 49,000 vehicles, down from a previous guidance of 57,000 vehicles.
The change came due to a shortage in a component that is disrupting production, according to the company.
"Interestingly, 2024 full-year deliveries guidance was reiterated at ~50-52K despite the production shortfall, implying unchanged demand, although we note that the softer deliveries in 3Q do not on the surface appear supply-related," Brinkman said.
Rivian added 3,139 units to its inventory in the third quarter, marking one of the company's largest quarterly adds. The figure was higher than an average quarterly change of around 950 units, the analyst said, which could suggest soft demand.
"The softer trend to production (and possibly deliveries also) we think could endanger the company’s still growth stock multiple."
Here are other recent analyst ratings for Rivian and their price targets:
- Guggenheim: Maintained a Buy rating and lowered the price target from $21 to $18
- Mizuho: Maintained a Neutral rating and lowered the price target from $15 to $12
- Truist: Maintained a Hold rating and lowered the price target from $16 to $12
- Barclays: Maintained an Equal-Weight rating and lowered the price target from $16 to $13
- Wells Fargo: Maintained an Equal-Weight rating and lowered the price target from $15 to 11
Key Items to Watch: Rivian's quarterly report will mark one of the first automotive companies to present earnings and comments after the 2024 election.
Rivian stock fell Wednesday in the aftermath of Donald Trump winning the 2024 presidential election. While it's possible Rivian won't address the matte, analysts and investors would like to hear if the new presidency could hurt the overall electric vehicle company and what Rivian will be doing to address the concerns.
The election win by Trump comes as Rivian faces a crossroads of increasing production capabilities ahead of the R2 launch planned for 2026 and could see lower production and delivery figures ahead of new vehicles.
Another item Rivian may not address would be the competition from companies like Tesla. Rivian was mentioned as a buyout candidate to Tesla CEO Elon Musk, but he said the company wasn't interested and suggested potential struggles ahead.
"Rivian's going to have a hard time," Musk said.
Musk previously predicted in February 2024 that Rivian had around six quarters before it went bankrupt.
A joint venture with Volkswagen VWAGY worth up to $5 billion could help Rivian's financials. Investors and analysts could also get an update on this joint venture Thursday.
RIVN Price Action: Rivian stock is up 5.07% to $10.20 on Thursday versus a 52-week trading range of $8.26 to $24.61. Rivian stock is down 53% year-to-date in 2024.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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