Rivian Automotive, Inc. (NASDAQ: RIVN) has reported a larger-than-feared loss for the fourth quarter of 2021. Its quarterly loss exceeded the Street consensus by 2.9%, while the revenues lagged the estimate by 11.7%.
Along with lackluster results, the weak projection for 2022 seems to have adversely impacted the market sentiments. Shares of Rivian lost 12.7% in after-hours trading on Thursday, closing at $35.93.
Rivian manufactures and sells electric vehicles as well as provides related accessories for use in commercial and consumer markets. Among its offerings are sports utility vehicles and pickup trucks. It is headquartered in San Jose, CA.
Quarterly Highlights
In the quarter, Rivian’s adjusted loss was $2.43 per share, wider than the Street estimate of a loss of $1.64 per share. However, the bottom line was favorable, compared with the year-ago loss of $3.51 per share.
Revenues stood at $54 million, below the consensus estimate of $61.2 million. The company delivered 909 vehicles in the quarter. The cost of revenue was $437 million, and total operating expenses stood at $2,071 million. Gross profit was ($383) million in the quarter, as costs per unit of vehicle manufactured were high.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were ($1,108) million versus ($341) million in the year-ago quarter.
Annual Highlights
In 2021, Rivian reported an adjusted loss of $14.78 per share, compared with a loss of $10.10 per share in the previous year. Revenues were $55 million in the year.
Exiting the fourth quarter, Rivian’s cash and cash equivalents stood at $18,133 million, up compared with $2,979 million at the end of the year-ago quarter. The non-current portion of long-term debt was $1,226 million, compared with $47 million in the year-ago period.
In 2021, the company’s net cash outflow for operating activities was $2,622 million, and capital expenditure was $1,794 million. Free cash outflow in the year was $4,416 million.
Projections for 2022
Rivian anticipates manufacturing nearly 50,000 vehicles in 2022, ignoring the impacts of woes created by supply-chain restrictions. However, the number is reduced to just 25,000 vehicles, across Rivian Commercial Van (RCV) and R1 platforms, when supply-chain issues are taken into account.
Adjusted EBITDA is predicted to be ($4,750) million and capital expenditure is expected to be $2,600 million.
Wall Street’s Take
Following the release, Vijay Rakesh, an analyst at Mizuho Securities, reiterated a Buy rating on Rivian and lowered the price target to $100 (reflecting 142.95% upside potential from current levels) from $145.
The Street is cautiously optimistic on Rivian and has a Moderate Buy rating on the stock based on 7 Buys and 4 Holds. The average Rivian price target is $99.70, suggesting 142.23% upside potential from current levels. Over the past year, shares of Rivian have lost 59.1%.
Smart Score
According to TipRanks’ Smart Score system, Rivian gets an eight out of 10, which indicates that the stock is likely to outperform the market averages.
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