Workhorse Group, Inc. (WKHS) has delivered disappointing results for the third quarter of 2021. The company designs and builds electric-powered delivery and utility vehicles.
The company reported a quarterly loss of $0.77 per share, wider than the estimated loss of $0.33 per share. In the prior-year quarter, Workhorse had reported a loss of $0.78 per share. (See Workhorse stock charts on TipRanks)
Workhorse recorded negative revenue of $576,602 due to a $1.1 million refund liability related to the recall of C-1000 vehicles. Also, the figure fell short of analysts’ expectations of $895,500.
The company’s CEO Rick Dauch said, “With the strong industry fundamentals and tailwinds we have in our sector, I am optimistic that Workhorse will be prepared to deliver the best-in-class vehicles for the commercial electric vehicle market starting in 2023.”
Wall Street’s Take
In response to the company’s disappointing quarterly performance, BTIG analyst Gregory Lewis lowered his price target on WKHS to $14 (110.8% upside potential) from $20. The analyst, however, maintained a Buy rating on the stock.
The rest of the Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 2 Buys and 2 Holds. The average Workhorse price target of $10.50 implies 58.1% upside potential.
Hedge Fund Activity
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Workhorse is currently Very Negative, as the cumulative change in holdings across all 4 hedge funds that were active in the last quarter was a decrease of 4.4 million shares.