Rivian Automotive (RIVN: NSD) is set to report its fourth-quarter 2023 earnings after market close on February 21st. Investors eagerly await this report, hoping to gauge the company’s progress on its ambitious production ramp-up and overall financial health.
What Does Stock Target Advisor Say About Rivian?
Stock Target Advisor‘s rating for Rivian Automotive Inc aligns with a Sell recommendation, with a target price of $20.62 and a projected price change of 26.53% within the next 12 months. Comparatively, the average analyst target price for Rivian is slightly higher at USD 23.25, culminating in an average analyst rating of Buy.
Positive signals from the analysis include low volatility and high market capitalization, while negative signals such as overpricing, poor risk-adjusted returns, negative cash flow, and low earnings growth are also highlighted. Rivian Automotive Inc is operating within the Auto Manufacturers sector with trade currency in USD.
A Deep Dive into Rivian’s Financial Health:
Below are the anticipated findings from the Q4 report of Rivian:
- Revenue: Analysts expect Rivian to report revenue of $1.28 billion, up from $536 million in the prior-year quarter. This signifies continued growth, but the focus will be on the revenue breakdown between vehicle sales and service revenue.
- Earnings per Share (EPS): The consensus estimate is for a loss of $1.39 per share, reflecting ongoing investments in production capacity and research & development. A narrower-than-expected loss could be seen as positive.
- Production: Rivian achieved its 2023 production target of 52,000 vehicles, but Q4 numbers are crucial. Meeting or exceeding internal production estimates will bolster investor confidence.
- Deliveries: While production numbers matter, delivery figures directly impact revenue. Analysts expect around 16,000 deliveries in Q4, and exceeding this number would be a positive surprise.
Conclusion:
Rivian’s Q4 earnings report is a critical moment for the company. Positive results on production, deliveries, and financial performance could reaffirm investor confidence in its long-term potential. However, any setbacks could raise concerns about its ability to execute on its ambitious plans.
