Tesla TSLA is slated to launch third-quarter 2024 results on Oct. 23, after the closing bell. The outcomes will primarily middle across the firm’s car deliveries and revenue margins.
Keep up-to-date with the quarterly releases: See Zacks Earnings Calendar.
TSLA missed earnings estimates in every of the trailing 4 quarters, the typical damaging shock being 7.99%. Earlier than we delve into the components which can be set to form its upcoming outcomes, right here’s a snapshot of its second-quarter 2024 earnings report.
(Additionally learn: A Comprehensive Look at Tesla’s Q3 Earnings Expectations)
Tesla’s Q2 Highlights
Within the second quarter of 2024, the electrical car (EV) titan reported earnings per share of 52 cents, which declined from the year-ago determine of 91 cents and likewise missed the Zacks Consensus Estimate of 62 cents. Whole revenues got here in at $25.5 billion, witnessing year-over-year progress of two%. The highest line additionally topped the consensus mark of $25.1 billion.
Tesla’s second-quarter manufacturing totaled 410,831 models (386,576 Mannequin 3/Y and 24,255 different fashions), down 14.1% 12 months over 12 months. The corporate delivered 443,956 automobiles, reflecting a year-over-year decline of 5%. The Mannequin 3/Y registered deliveries of 422,405 automobiles, down 5.5% from the year-ago interval. Deliveries of the opposite fashions totaled 21,551 models, up 12.1% 12 months over 12 months.
Tesla had money/money equivalents of $30.7 billion as of June 30, 2024. Lengthy-term debt and finance leases, internet of the present portion, totaled $5.48 billion, up from $2.86 billion as of Dec. 31, 2023. The corporate generated FCF of $1.34 billion throughout the reported quarter, which rose from $1 billion generated within the year-ago interval.
Q3 Supply Progress to Help TSLA Amid Shrinking Margins
The corporate delivered 462,890 models throughout the third quarter. After experiencing two consecutive quarters of a year-over-year decline, Tesla’s deliveries lastly rose within the third quarter. The supply numbers rose 6.4% and 4.3% on a yearly and sequential foundation, respectively. Nonetheless, it missed our mannequin projection of 471,559 models.
Tesla’s Mannequin 3 and Y are the corporate’s most profitable EVs, accounting for many of its gross sales. Throughout the quarter, Tesla delivered 439,975 of these, up 5% 12 months over 12 months. Deliveries of different fashions rose to 22,915 models, up 43.4% 12 months over 12 months.
Fueled by the supply surge, our forecasts suggest 13.1% year-over-year progress in automotive revenues, projecting the metric to achieve $22.19 billion.
Nonetheless, excessive manufacturing prices and aggressive value cuts throughout fashions are weighing on the corporate’s margins. We venture the price of automotive gross sales to rise greater than 13% to round $18.1 billion. Automotive gross margin (excluding leasing) is projected at 17.7%, down from 18.2% recorded within the year-ago interval and 17.8% within the second quarter of 2024.
Total Earnings & Income Projections of Tesla
Our confirmed mannequin doesn’t conclusively predict an earnings beat for Tesla, because it doesn’t have the fitting mixture of a optimistic Earnings ESP and a good Zacks Rank. You may uncover one of the best shares to purchase or promote earlier than they’re reported with our Earnings ESP Filter.
The corporate has an Earnings ESP of -1.28% and carries a Zacks Rank #2 (Purchase) at current.
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is pegged at 58 cents per share, indicating a contraction of 12.12% on a year-over-year foundation. The consensus mark for EPS has moved north by a penny over the previous seven days. The Zacks Consensus Estimate of $25.57 billion for gross sales signifies a 9.49% rise on a year-over-year foundation.
Shares With Favorable Mixture
Whereas an earnings beat seems unsure for Tesla, Allison Transmission Holdings, Inc. ALSN, Cummins Inc. CMI and Rivian Automotive, Inc. RIVN are some automotive gamers, that, based on our mannequin, have the fitting mixture of components to publish an earnings beat for the quarter to be reported.
ALSN has an Earnings ESP of +1.20% and a Zacks Rank #3 (Maintain) at current. You may see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The corporate is slated to report third-quarter 2024 outcomes on Oct. 29. The Zacks Consensus Estimate for Allison’s to-be-reported quarter’s earnings and revenues is pegged at $2 per share and $786.91 million, respectively. ALSN beat earnings estimates in every of the trailing 4 quarters, with the typical shock being 10.58%.
CMI has an Earnings ESP of +3.91% and a Zacks Rank #3 at current. The corporate is slated to report third-quarter 2024 outcomes on Nov. 5. The Zacks Consensus Estimate for Cummins’ to-be-reported quarter’s earnings and revenues is pegged at $4.89 per share and $8.28 billion, respectively. CMI beat earnings estimates in two of the trailing 4 quarters and missed twice, with the typical shock being 1.07%.
RIVN has an Earnings ESP of +0.38% and a Zacks Rank #3 at current. The corporate is slated to report third-quarter 2024 outcomes on Nov. 7. The Zacks Consensus Estimate for Rivian’s to-be-reported quarter’s loss per share and revenues is pegged at 88 cents and $968.3 billion, respectively. RIVN beat earnings estimates in two of the trailing 4 quarters and missed twice, with the typical damaging shock being 0.42%.
7 Greatest Shares for the Subsequent 30 Days
Simply launched: Specialists distill 7 elite shares from the present listing of 220 Zacks Rank #1 Robust Buys. They deem these tickers “Most Seemingly for Early Value Pops.”
Since 1988, the complete listing has crushed the market greater than 2X over with a median acquire of +23.7% per 12 months. So make sure to give these hand picked 7 your fast consideration.
Cummins Inc. (CMI) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Allison Transmission Holdings, Inc. (ALSN) : Free Stock Analysis Report
Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.
