RIVN Stock: 3 Key Things to Watch When Rivian Reports Earnings thumbnail

RIVN Stock: 3 Key Things to Watch When Rivian Reports Earnings

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Rivian (RIVN) is new electric vehicle shown at the New York International Auto Show 2019, at the Jacob Javits Center. This was Press Preview Day One of NYIAS

Source: Miro Vrlik Photography / Shutterstock.com

Rivian (NASDAQ:RIVN) stock is in full focus today after the company confirmed that it will report third-quarter earnings on Nov. 9 after the market close. Like many other electric vehicle (EV) companies, Rivian has experienced its fair share of headwinds this year. These include supply-chain inefficiencies, reduced guidance, inflation and vehicle recalls.

As of June 30, Rivian had launched three vehicle models and produced 8,000 of them. The company also had 98,000 preorders for its R1T and R1S electric vehicles. These preorders do not include Amazon’s (NASDAQ:AMZN) preorder for 100,000 electric delivery vans (EDVs), either, which is set to be delivered by 2030. As of Q2, the e-commerce giant had already received EDVs in over a dozen cities.

With that in mind, let’s take a look at three metrics to watch for RIVN stock and the company’s upcoming earnings.

For Q3, analysts expect revenue of $551.57 million, implying year-over-year (YOY) revenue growth of 55,057%. The low range of the estimate sits at $435.5 million, while the high sits at $673.9 million. During Q3 2021, revenue tallied in at just $1 million. The massive ramp up in revenue is attributable to the company fulfilling orders for its EVs.

Meanwhile, analysts forecast a Q3 earnings per share (EPS) loss of $1.82 as well. The low end of the estimate is a loss of $2.03 while the high end is a loss of $1.62. A year ago, Rivian reported a loss of $7.68. It will likely take several years for Rivian to become profitable as it works to ramp up production. That can be translated into facility and raw material expenses.

Last quarter, Rivian posted full-year production guidance of 25,000 vehicles. RIVN stock could also receive a major boost if that figure is raised in the upcoming report. That said, this guidance was previously lowered from the initial public offering (IPO) roadshow estimate of 50,000 vehicles.

For Q4, analysts expect revenue of $798.41 million and an EPS loss of $1.79. This would bring full-year revenue to $1.81 billion and full-year EPS to a loss of $6.90.

Finally, investors will be curious about Rivian’s cash balance. As of Q2, the company had $15.5 billion of cash and cash equivalents on hand. Management said those billions of dollars should be enough to sustain company operations until 2025.

On the date of publication, Eddie Pan held a long position in AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.