Electric vehicle start-up Fisker (ticker: FSR) faced a decline in its stock value as it reported less-than-stellar third-quarter results. Furthermore, the company did not provide any production guidance, leading to a further drop in the stock price.
Fisker announced a loss of 27 cents per share in the third quarter, with sales amounting to approximately $72 million. Analysts on Wall Street had anticipated a loss of 23 cents per share from sales of around $143 million. Interestingly, this quarter marked Fisker's initial foray into significant sales as it shipped its first electric vehicle, named the Ocean.
During the quarter, Fisker successfully delivered 1,097 vehicles and produced a total of 4,725. Notably, an additional 1,200 vehicles were delivered in October as well.
Surprisingly, the third-quarter news release did not include any full-year production guidance. In August, Fisker had initially projected the construction of approximately 20,000 to 23,000 units for this year, but this estimate was later revised lower. Back in May, Fisker's production forecast was even more ambitious, targeting 32,000 to 36,000 units for 2023.
To address these results, management will be hosting a conference call scheduled for 5 p.m. Eastern time. Investors are particularly interested in obtaining more details regarding production and deliveries.
Stay tuned for updates on Fisker's performance in the electric vehicle market.
Fisker Expects Expenses to Decrease in 2023
Management at Fisker has announced that they anticipate a decline in research and development, selling, general and administration expenses, as well as capital spending for the full year of 2023. The projected range for these expenses is between $565 million and $640 million, which aligns with the estimates provided in August.
Following the release of this news, Fisker's stock experienced an 8.5% drop, trading at $3.76 per share. However, it had gained 6.6% in regular trading on Monday, closing at $4.11 per share.
It is worth noting that the stock closed at a price that was 26 cents lower than its value on November 7th. This recent earnings report deviated from the norm due to Fisker's decision to delay it. The company had initially planned to report earnings on November 8th but postponed it after hiring a new chief accounting officer. As a result, Fisker's stock price decreased from $4.37 per share to $3.99 per share upon the announcement of the delay.
Over the course of the past 12 months, Fisker's stock has experienced a significant decline of 52%. In contrast, the S&P 500 and Nasdaq Composite have seen gains of approximately 11% and 23% respectively. The decreased investor enthusiasm towards EV start-up stocks that are not yet profitable can be attributed to higher interest rates and lower prices for electric vehicles, largely influenced by Tesla's price cuts.
Analysis of options markets suggests that there is an anticipated movement of approximately 15%, either upward or downward, following the earnings announcement. Historically, Fisker shares have fluctuated an average of about 12% after each of the last four quarterly reports. It is worth noting that in this period, the stock has experienced a gain once and a decline three times.
For more information, please contact Al Root.
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