Tesla (TSLA) To Report Q1 Earnings: What's In The Cards?
Zacks Investment Research | Apr 30, 2018 11:00PM ET
Tesla, Inc. (NASDAQ:TSLA) is expected to report first-quarter earnings results on May 2, after the market closes. In the last reported quarter, the electric carmaker delivered earnings beat of 4.7%. The long-term expected earnings growth for the company (over three to five years) is currently pegged at 25%.
In the trailing four quarters, the company missed estimates twice and beat on the other two, with an average negative earnings surprise of 31.2%. Year to date, shares of Tesla have declined 5.6%.
Let’s see, how things are shaping up for this announcement.
Tesla, Inc. Price and EPS Surprise
Factors Influencing This Quarter
In first-quarter 2018, Tesla produced 34,494 vehicles, up 40% from fourth-quarter 2017. This happens to be the most productive quarter in the history of the company. Out of the total vehicles produced, 24,728 were Model S and Model X while 9,766 were mass-market Model 3 sedans. By the end of first-quarter 2018, production of Model 3 rose considerably on a sequential basis, even though the company missed the target of producing 2,500 units per week. In reality, it produced 2020 Model 3 cars over the last seven days of the quarter. Despite the production-target miss, the first-quarter 2018 performance of Tesla looks encouraging.
Although first-quarter revenues are anticipated to increase, high costs associated with the company’s Model 3 ramp up are likely to have some negative impact on its results. In fact, a higher mix of Model 3s in the company’s automotive sales mix may have some negative impact on the gross margin in the short-run.
Earnings Whispers
Our proven model does not predict earnings beat for Tesla this quarter. This is because a stock needs to have both a positive Zacks Investment Research
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