Workhorse Significantly Misses Q3 Revenue Estimates Impacted By HVIP Voucher Delays, Slashes FY23 Outlook Again

Workhorse Group Inc WKHS reported sales, net of returns and allowances, for Q3 FY23 were $3.03 million, up from $1.5 million a year ago, missing the consensus of $20.9 million.

The increase in sales was led by the reversal of a $2.4 million sales allowance in the current period related to the sale of W4 CC vehicles in Q2 FY23.

Rick Dauch CEO, said, "We added two new certified dealers to our commercial vehicle network. At our Aero business, we continue to work closely with UPS Flight Forward to put our aircraft on their FAA Part 135 certificate. We sold UPS additional drones for FAA certification and field testing."

"While we made tremendous progress in the areas within our control, our ability to deliver W4 CCs and W750s during the quarter was severely impacted by the lack of HVIP voucher availability in California. As of today, I am pleased to report that we have successfully resolved this issue and are moving swiftly ahead."

The gross loss was $(3.53) million, narrowed from $(7.97) million the prior year. The operation loss was $(21.1) million versus $(48.8) million the previous year.

EPS loss of $(0.14) missed the analyst consensus loss of $(0.12)

As of September 30, 2023, the company held $38.9 million in cash and cash equivalents. 

The company is evaluating a broad range of strategic alternatives for its Aero business which may include a sale of the business or a strategic partnership.

Outlook: WKHS cuts guidance for FY23 revenue to $10 million - $15 million (from $65 million-$85 million) versus the consensus of $63.01 million.

"Our financial results for the third quarter and our outlook for the year were significantly impacted by the HVIP voucher delays," said Workhorse CFO Bob Ginnan.

"The positive resolution of the HVIP voucher is great news and provides meaningful momentum exiting 2023; however, in light of this market disruption and the delayed timing for access of our products to the California market, we are significantly reducing our revenue outlook for the remainder of 2023," added Ginnan.

Price Action: WKHS shares are trading lower by 4.18% at $0.3832 on the last check Tuesday. 

Photo Via Company

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsEquitiesNewsPenny StocksGuidanceSmall CapMarketsBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!