Nikola Corporation Price and EPS Surprise


Nikola Corporation NKLA is slated to release third-quarter 2022 results on Nov 3, before the market opens. The Zacks Consensus Estimate for the to-be-reported quarter’s loss per share and revenues is pegged at 39 cents and $22.81 million, respectively.

For the third quarter, the consensus estimate for NKLA’s loss per share has remained constant in the past 60 days. Its bottom-line estimates imply a decline of 77.3% from the year-ago reported number. Over the trailing four quarters, NKLA surpassed the consensus estimate on all occasions, with the average surprise being 16.43%. This is depicted in the graph below:

Nikola Corporation Price and EPS Surprise

Nikola Corporation price-eps-surprise | Nikola Corporation Quote

Q2 Highlights

In second-quarter 2022, Nikola incurred an adjusted quarterly loss of 25 cents per share, narrower than the Zacks Consensus Estimate of a loss of 27 cents. This compares to an adjusted loss of 20 cents per share a year ago. Nikola posted revenues of $18.13 million in the quarter, surpassing the Zacks Consensus Estimate of $17 million.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Nikola for the quarter to be reported, as it does not have the right combination of the two key ingredients. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: NKLA has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate equals the Zacks Consensus Estimate.

Zacks Rank: It currently carries a Zacks Rank of 3.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Things to Note

Nikola began deliveries of its popular BEV truck series in April and has been ramping up production. The EV maker registered its first truck revenues in the past quarter, and the boost in production is likely to have positively impacted revenues in the third quarter. Also, in the third quarter, Nikola unveiled hydrogen distribution systems in California to provide an impetus to its de-carbonization strategy and a boost to the heavy-duty transport sector. Its efforts in delivering innovative infrastructure are anticipated to aid its prospects in the to-be-reported quarter.

On a somewhat bearish note, NKLA’s efforts in developing modernized technologies have been putting a strain on its coffers and the company has been burning cash, which is likely to have weighed on its third-quarter earnings. Nikola’s third-quarter margins might also have been dampened by soaring R&D activities. In the last reported quarter, Nikola’s SG&A expenses also flared up 13% year over year. Total operating expenses are witnessing a year-over-year spiral, and the trend is expected to have continued in the third quarter.

Stocks With Favorable Combination

While an earnings beat is uncertain for Nikola, here are a few stocks, which, according to our model, have the right combination of elements to post an earnings beat for the quarter to be reported:

CNH Industrial CNHI will release third-quarter 2022 results on Nov 08. The company has an Earnings ESP of +6.25% and a Zacks Rank #3.

The Zacks Consensus Estimate for CNH Industrial’s to-be-reported quarter’s earnings and revenues is pegged at 32 cents per share and $5.33 billion, respectively. CNHI surpassed earnings estimates in all four trailing quarters, with the average surprise being 27.73%.

Rivian Automotive RIVN will release third-quarter 2022 results on Nov 9. The company has an Earnings ESP of +0.47% and a Zacks Rank #3.

The Zacks Consensus Estimate is pegged at a loss of $1.78 a share for Rivian’s to-be-reported quarter and the same for revenues is pegged at $512.31 million. RIVN surpassed earnings estimates in two of the trailing four quarters and missed in the rest, with the average surprise being a negative 6.68%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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