Shares of Fisker (NYSE: FSR) are on a downward trend in pre-market trading after the company announced its Q1 earnings. The automotive company reported a loss of $0.38 per share, wider than its loss of $0.41 per share in the same period last year and below analysts’ expectations of a loss of $0.31 per share. The company’s revenues were $198,000 in Q1, a significant increase from $12,000 in the same period last year, but still below consensus estimates of $5.3 million.
Fisker is experiencing challenges that have led the company to revise its production forecast for FY23. The company now expects to produce between 32,000 and 36,000 vehicles, lower than its previous forecast of 42,400 vehicles. In addition, Fisker reported that its Q2 production target of 1,400 to 1,700 vehicles depends on whether its “suppliers and partners can support this volume and ramp.” The company anticipates a gross margin of 8% to 12% for FY23, with potentially positive adjusted EBITDA “provided input costs do not change dramatically.”
Wider-Than-Expected Losses in Q1
Fisker’s Q1 earnings report has shown a loss of $0.38 per share, which is wider than its loss of $0.41 per share in the same period last year. The wider-than-expected loss has led to a downturn in pre-market trading, with investors expressing disappointment in the company’s results. The company has attributed the loss to various factors, including supply chain disruptions and the ongoing global chip shortage.
Revenues for Q1
Despite the wider-than-expected loss, Fisker has reported an increase in revenue for Q1. The company’s revenue for the period was $198,000, a significant increase from $12,000 in the same period last year. However, Fisker’s Q1 revenues were still below consensus estimates of $5.3 million, indicating that the company’s performance may not be meeting investor expectations.
Downgraded Production Forecast
Fisker has revised its production forecast for FY23, lowering its estimate from 42,400 vehicles to between 32,000 and 36,000 vehicles. The downgrade has been attributed to a number of factors, including supply chain issues and the global chip shortage. Fisker has also expressed uncertainty regarding its Q2 production target of 1,400 to 1,700 vehicles, indicating that the target depends on whether the company’s suppliers and partners can support this volume and ramp.
Gross Margin and Adjusted EBITDA for FY23
Fisker anticipates that its gross margin for FY23 will be in the range of 8% to 12%, with potentially positive adjusted EBITDA “provided input costs do not change dramatically.” The company’s gross margin and adjusted EBITDA projections indicate that the company is taking steps to improve its financial performance despite the challenges it is facing.
Analyst Consensus
Analysts remain hesitant about Fisker’s stock, with a consensus rating of Hold based on two Buys, one Hold, and two Sells. Analysts’ hesitancy may be due to the company’s revised production forecast and wider-than-expected Q1 losses.
Conclusion
Fisker’s Q1 earnings report has shown wider-than-expected losses, leading to a downturn in pre-market trading. Despite an increase in revenue for the period, Fisker’s revenues were below consensus estimates, indicating that the company’s performance may not be meeting investor expectations. The company has revised its production forecast for FY23, lowering its estimate from 42,400 vehicles to between 32,000 and 36,000 vehicles. Fisker has attributed the downgrade to various factors, including supply chain disruptions and the ongoing global chip shortage. The company’s gross margin and adjusted EBITDA projections for FY23 indicate that it is taking steps to improve its financial performance, but analysts remain hesitant about Fisker’s stock.
The automotive industry has been hit hard by the global chip shortage, which has led to production delays and a decrease in the number of vehicles produced. Fisker is not alone in experiencing these challenges, with other companies also revising their production forecasts and reporting lower-than-expected earnings. However, the global chip shortage is not the only challenge that Fisker is facing, with supply chain disruptions and other factors also impacting the company’s performance.
Fisker’s Q1 earnings report highlights the importance of supply chain resilience and the need for companies to have backup plans in place. The ongoing global chip shortage has highlighted the vulnerability of supply chains and the need for companies to have contingency plans in place. Fisker’s revised production forecast for FY23 indicates that the company is taking steps to mitigate the impact of the global chip shortage and other challenges.
Despite the challenges that Fisker is facing, the company has a number of positive developments in the pipeline, including the launch of its Ocean SUV and plans to expand into the European market. The company’s Ocean SUV is a fully electric vehicle that has been designed with sustainability in mind, and is expected to appeal to environmentally conscious consumers. Fisker’s expansion into the European market will also provide the company with new opportunities for growth and expansion.
In conclusion, Fisker’s Q1 earnings report has shown wider-than-expected losses and a revised production forecast for FY23. The company is facing a number of challenges, including the global chip shortage and supply chain disruptions. However, Fisker has a number of positive developments in the pipeline, including the launch of its Ocean SUV and plans to expand into the European market. Fisker’s performance in the coming months will be closely watched by investors and analysts, as the company seeks to navigate the challenges of the automotive industry and build a sustainable and profitable business.
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