Electric vehicle manufacturer Nikola (NASDAQ:NKLA) will be reporting earnings tomorrow before the bell. Here’s what you need to know.
Nikola beat analysts’ revenue expectations by 19.6% last quarter, reporting revenues of $31.32 million, up 104% year on year. It was a strong quarter for the company, with a decent beat of analysts’ operating margin estimates.
Is Nikola a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Nikola’s revenue to grow 2,216% year on year to $36.65 million, a reversal from the 107% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$2.29 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Nikola has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Nikola’s peers in the automobile manufacturers segment, some have already reported their Q3 results, giving us a hint as to what we can expect. General Motors delivered year-on-year revenue growth of 10.5%, beating analysts’ expectations by 9.9%, and Tesla reported revenues up 7.8%, falling short of estimates by 1%. General Motors traded up 8.2% following the results while Tesla was also up 22%.
Read our full analysis of General Motors’s results here and Tesla’s results here.
Investors in the automobile manufacturers segment have had steady hands going into earnings, with share prices flat over the last month. Nikola is down 4.3% during the same time and is heading into earnings with an average analyst price target of $20.80 (compared to the current share price of $4.45).
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