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Rivian shares are up in after-hours on a ‘positive earnings report’

By:
on Nov 9, 2022
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  • Rivian reports a narrower than expected loss for its third quarter.
  • Truist analyst discussed the earnings report on Yahoo Finance Live.
  • Rivian shares also jumped on reiterated full-year production guidance.

Rivian Automotive Inc (NASDAQ: RIVN) is trading up in extended hours after the EV company reported a narrower than expected loss for its fiscal third quarter and reiterated its full-year production outlook.

Truist analyst reacts to Rivian’s earnings report

The Nasdaq-listed firm says it still expects to produce 25,000 vehicles this year and reiterated its guidance for full-year adjusted EBITDA of $5.45 billion as well. Reacting to its outlook on Yahoo Finance Live, Jordan Levy (Analyst at Truist Securities) said:

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They can keep up with guidance. They talked about starting up a second shift earlier in the year. That expands their ability to produce. They’ve moved to rail on shipments from freight trucking. That’ll help. The ball is getting rolling on production.

Nonetheless, Rivian Automotive Inc did agree that supply constraints remained a headwind and delayed the launch of its R2 platform. Still, Levy said:

Overall, positive earnings report. Pre-orders were up 20% QoQ. There are still a lot of hurdles (supply chain), but things have been moving in the right direction.

He expects “Amazon” to help with the growth story as well. Rivian shares are currently trading at less than half the price at which it debuted a year ago.

Rivian shares up on narrowed quarterly loss

  • Lost $1.72 billion versus the year-ago $1.23 billion
  • Per-share loss narrowed from $12.21 to $1.88
  • On an adjusted basis, per-share loss was $1.57
  • Revenue jumped % year-on-year to $536 million
  • Consensus was $1.79 of loss on $550 million revenue

According to Rivian, it has enough cash to fund its operations through 2025. In the letter to shareholders, executives said:

Our core focus remains on ramping production but we believe supply constraints will continue to be the limiting factor. We’re lowering our CAPEX guidance to $1.75 billion due to our streamlined product roadmap and shift of certain CAPEX to 2023.

Last month, Rivian reported its best quarterly production number to date (source). Wall Street recommends that you buy Rivian shares here as they have upside to about $52 on average.

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