Lightning eMotors (NYSE: ZEV) shares gained 8.8% on May 13 after the leading provider of zero-emission powertrains, medium-duty and specialty commercial electric vehicles for fleets, delivered a blowout first-quarter earnings beat.
Revenues, however, were modestly shy of expectations. Furthermore, the company provided second-quarter guidance below the street’s expectations.
The company reported an adjusted loss of $0.14 per share, much better than the street’s estimated loss of $0.24. Furthermore, it was a significant improvement over the previous year’s loss of $0.83 per share.
Revenues jumped 18% year-over-year to $5.4 million but were a little shy of the consensus estimate of $5.53 million. The increase in revenues reflects a surge in the number of quarterly units sold, which came in at 68 units.
Based on current business conditions and continued supply chain challenges, the company provided financial guidance for the second quarter of FY2022.
For the second quarter, revenues are projected to be in the range of $6 million to $8 million, much lower than the consensus estimate of $10.17 million. Meanwhile, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss is forecast to be in the range of -$18 million to -$20 million.
Lightning eMotors CEO, Tim Reeser, commented, “We recently won new and repeat orders with major fleets in the U.S. and Canada across a broad range of vehicle applications.”
He further added, “Earlier this week, we announced a partnership to provide Blue Bird with Electric powertrains for their new Truck Chassis, which moves both companies into new markets and platforms and leverages their brand and deep nationwide sales and service channels.”
Wall Street’s Take
Overall, the stock has a Strong Buy consensus rating based on 4 unanimous Buys. The average Lightning eMotors stock forecast of $11 implies 187.96% upside potential from current levels.
Like its peers, Lightning eMotors is facing the brunt of chassis supply chain challenges.
However, the company has mitigation strategies in place that include expanding the list of top-tier original equipment manufacturer (OEM) partners like General Motors (GM) and Blue Bird Corp (BLBD), and providing a top-class customer experience leading to repeat orders from major fleets.
The strategic initiatives should result in increasing profitability going forward.
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