Uncovering Potential: Worksport's Earnings Preview

Worksport WKSP is preparing to release its quarterly earnings on Thursday, 2025-03-27. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Worksport to report an earnings per share (EPS) of $-1.10.

The market awaits Worksport's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Performance in Previous Earnings

The company's EPS missed by $0.10 in the last quarter, leading to a 15.78% drop in the share price on the following day.

Here's a look at Worksport's past performance and the resulting price change:

Worksport Share Price Analysis

Shares of Worksport were trading at $3.77 as of March 25. Over the last 52-week period, shares are down 34.96%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

Analysts' Perspectives on Worksport

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Worksport.

The consensus rating for Worksport is Buy, based on 1 analyst ratings. With an average one-year price target of $1.5, there's a potential 60.21% downside.

Comparing Ratings with Competitors

The following analysis focuses on the analyst ratings and average 1-year price targets of REE Automotive, Stoneridge and Solid Power, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for REE Automotive, with an average 1-year price target of $15.0, suggesting a potential 297.88% upside.
• Analysts currently favor an Outperform trajectory for Stoneridge, with an average 1-year price target of $16.0, suggesting a potential 324.4% upside.
• As per analysts' assessments, Solid Power is favoring an Buy trajectory, with an average 1-year price target of $2.0, suggesting a potential 46.95% downside.

Snapshot: Peer Analysis

The peer analysis summary outlines pivotal metrics for REE Automotive, Stoneridge and Solid Power, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Worksport is positioned at the top for Revenue Growth with a significant increase. In terms of Gross Profit, Worksport is at the bottom compared to its peers. Worksport has the lowest Return on Equity among its peers.

Unveiling the Story Behind Worksport

Worksport Ltd through its subsidiaries, designs, develops, manufactures, and owns the IP on a variety of tonneau covers, solar integrations, and NP (Non-Parasitic), Hydrogen-based true green energy solutions for the sustainable, clean energy, and automotive industries. The company's product includes soft vinyl tonneau covers and hard aluminum tonneau covers.

Key Indicators: Worksport's Financial Health

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Worksport displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 581.02%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Worksport's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of -132.43%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Worksport's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -23.29%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Worksport's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -15.87%, the company may face hurdles in achieving optimal financial performance.

Debt Management: With a below-average debt-to-equity ratio of 0.37, Worksport adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for Worksport visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.