Penny stock Canoo (NASDAQ:GOEV) declined 3.2% in yesterday’s extended trading session following the release of weaker-than-expected first-quarter results. The company’s performance was impacted by slowing demand for electric vehicles (EVs) and intense competition, particularly from Chinese auto companies.
Canoo is an American EV startup that produces innovative and subscription-based mobility solutions.
GOEV’s Q1 Highlights
The company reported an adjusted loss of $1.13 per share, which was greater than the consensus estimates of a loss of $0.97. However, the reported figure compared favorably with a loss of $1.73 reported in the prior-year quarter.
Meanwhile, Canoo failed to report any revenues for the first quarter, missing Wall Street’s expectations of $1.1 million.
In terms of balance sheet figures, the company’s cash position showed improvement on a sequential basis. As of March 31, cash and cash equivalents came in at $18.2 million, compared with $6.4 million at the end of December 2023.
2024 Outlook
Canoo reaffirmed its 2024 outlook and expects its revenue to be between $50 million and $100 million. The consensus estimate is pegged at $68.7 million.
Moreover, the company forecasts that cash outflows will be in the range of $45 million to $75 million.
Is GOEV a Good Stock to Buy?
Based on five Buys and one Hold recommendation, the stock has a Strong Buy consensus rating. The analysts’ average price target on Canoo stock of $196.75 implies a limited upside potential of 2.7% from current levels. Shares of the company have declined by 53% so far this year.
