Workhorse Q3 2022 Earnings – the Stock Surges on the back of a Fresh Order of 500 All-Electric C-1000 Delivery Vehicles

Workhorse Grouping (NASDAQ:WKHS), the manufacturer of cost-effective and drone-integrated electrical commitment and utility vehicles, has endured a battering over the final couple of weeks as the stock registered a loss of over 43 pct relative to its all-time loftier share toll of $xxx.threescore on the 18th of September. Today, Workhorse shares are over again in focus as the company gears up to announce its earnings for the third quarter of 2020.

Workhorse (NASDAQ: WKHS) Financial Scorecard

During the three months that ended on the 30th of September 2020, Workhorse earned $564,707 in revenue, exceeding consensus expectations by 41 percent and registering an annual increase of over 14,000 percentage. The company had reported $92,000 in revenue during the last quarter.

(All figures are in thousands of dollars; all consensus figures have been sourced from here)

Workhorse informed via a press release today that information technology has received an guild for 500 of its all-electric C-grand delivery vehicles from Pritchard Companies. Acquit in listen that these EVs are geared toward the last-mile delivery segment and are powered past a modular battery pack organization, which offers a power output of between 35 and 70 kWh – the standard four-pack configuration offers the maximum ability output in this range. These EVs are also equipped with Workhorse's proprietary telematics arrangement, Metron.

Workhorse also reported $2.82 meg in Cost of Goods Sold (COGS) and $seven.56 million in operating expenses for the quarter. The company's involvement expense jumped over one,100 pct on an annual basis to $74.32 one thousand thousand, primarily due to a change in the fair value of the convertible notes.

(All figures are in millions of dollars)

Moreover, Workhorse reported $eighty.22 million in Cash and Cash Equivalent at the stop of Q3 2020.

(All figures are in millions of dollars)

Finally, Workhorse registered a net loss of $84.13 1000000, corresponding to a GAAP EPS of -$0.78. The net loss widened due to an increment in the involvement expense for the period.

(All figures are in dollars)

As far every bit the hereafter outlook is concerned, Workhorse does non expect to meet its previous guidance for Q4 2020 vehicle production of 300 to 400 units due to COVID-19 and battery supply bug. The company went on to note in its printing release:

"Nosotros view this as only a delay in our progress. We've introduced several new battery supplier options into our supply chain and volition have supplemental book additions in the first quarter of 2021. While we cannot predict the full touch from COVID right now, allow alone in 2021, when conditions improve and the coronavirus is no longer a business issue for us and our suppliers, so we would conceptualize producing approximately one,800 units in 2021."

Investors have reacted positively to Workhorse earnings today, with the stock registering a proceeds of over 3 percent pct in the pre-market trading.

Source

While Workhorse is in the red currently, it is expected to go profitable in the next two years, with consensus expectations of $4.v 1000000 in profits for 2022. Moreover, every bit per the contempo interview of the company's CFO with TD Ameritrade Network, Workhorse currently has a backorder of i,100 trucks, equating to potential revenue of $70 million.

Workhorse did non include any update regarding the much-anticipated USPS contract. Equally a refresher, the company remains a leading contender for a portion of the U.S. Postal service's (USPS) Side by side Generation Delivery Vehicle (NGDV) contract, meant to replace the aging fleet of USPS commitment vehicles. Expectations of Workhorse winning this contract have underpinned a substantial portion of the year-to-date rally in the stock. If any update is provided during the earnings telephone call, nosotros volition include it in this post accordingly.