EV (Electric Vehicle) maker Lucid (NASDAQ:LCID) will announce its Q4 financials after the market closes on February 22. While supply-chain headwinds and heightened competition continue to pose challenges, higher delivery volumes are likely to boost its top line significantly.
Analysts expect LCID to post revenues of $302.61 million, reflecting a quarter-over-quarter increase of about 55%. This growth will come from higher customer deliveries in Q4.
The company recently announced that it produced 3,493 vehicles in the fourth quarter and delivered 1,932 vehicles. This delivery number reflects a sequential increase of approximately 38% from Q3. In Q3, Lucid delivered 1,398 vehicles.
What stands out is that Lucid exceeded its full-year (2022) production guidance. The company produced 7,180 vehicles in 2022 compared to its forecast range of 6,000-7,000 cars.
While strong demand and higher delivery volumes will support sales, the company’s cost of revenue will also go up. Lucid expects to incur higher personnel and overhead costs as it ramps-up production. Given the pressure on the bottom line, analysts expect Lucid to continue to report a loss in Q4.
Analysts expect Lucid to post an adjusted loss of $0.41 per share in Q4 compared to $0.64 in the prior-year quarter.
Will Lucid Bounce Back?
Lucid stock marked a significant recovery in 2023. It gained over 60% year-to-date. Meanwhile, analysts’ 12-month average price target of $12.67 represents a further upside potential of 15.92%.
LCID has received three Buy, two Hold, and one Sell recommendations from the analysts, translating into a Moderate Buy consensus rating.
Bottom Line
Lucid is poised to deliver strong Q4 revenues, reflecting a 38% quarter-over-quarter increase in delivery volume. However, increased costs could continue to take a toll on its profitability. Further, based on analysts’ average price target, the stock has limited upside potential ahead of the earnings.
