The Lion Electric Company (LEV) has reported impressive third-quarter results on the back of solid growth in revenues. However, shares of the all-electric medium and heavy-duty urban vehicles manufacturer slipped 3.9% during the extended trading session on November 10. (See Lion Electric stock charts on TipRanks)
Quarterly Performance
Markedly, revenues more than quadrupled year-over-year to $11.9 million against revenues of $2.6 million reported in the prior-year quarter. The increase in revenues reflected a surge in the number of vehicles sold, which came in at 40 units during the quarter, as compared to 10 units a year ago.
Adjusted EBITDA stood at a negative $8.8 million against a negative $2.8 million in the same quarter last year.
On a positive note, the company reported adjusted earnings of $0.60 per share against a loss of $0.35 per share in the same quarter last year.
At the end of the quarter, the company had more than 450 vehicles on the road, having driven over 8 million miles.
Markedly, the company’s vehicle order-book of 2,024 all-electric vehicles consists of 261 trucks and 1,763 buses.
Management Weighs In
Looking ahead, Lion CEO, Marc Bedard, said, “While we expect global supply chain headwinds affecting many sectors to persist in 2022, we are taking tangible actions to mitigate the impact this will have on our production and performance.”
He added, “These tangible actions include increasing supplier redundancy, selectively sourcing raw materials on behalf of our component suppliers, increasing in-house fabrication of certain parts, and re-designing certain sub-assemblies.”
Wall Street’s Take
Consensus among analysts is a Moderate Buy based on 3 Buys and 2 Holds. The average Lion Electric price target of $18.30 implies 50.37% upside potential to current levels.
Furthermore, LEV scores a 6 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock is likely to perform in line with market averages.
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