Tesla Motors Inc. (TSLA) to Release its Fiscal Quarter Earnings

When: 08/05/2015 after market closes.

Within two days, investors will likely be curious about the company’s guidance for Q3 and an updated outlook for the rest of the year. Any scrutiny of Tesla’s expectations for future results is justified, as the market has priced in merciless growth.

Earnings: Analysts polled by FactSet expect Tesla to report an adjusted loss of 60 cents a share in the second quarter, which would be its third consecutive quarter without an adjusted profit. In the same period last year, Tesla earned 11 cents a share after one-time items.

Revenue: The same analysts forecast Tesla’s revenue to hit $1.18 billion up from $858 million a year ago. Tesla’s automotive division is seen reporting sales of $1.1 billion up from $768 million a year earlier.

Share price: Shares of Tesla have gained 20% so far this year and 18% in just the past three months. That compares with gains of 2.5% and 1.2%, respectively, for the S&P 500 index.

Wall Street’s 2QFY15 Projections: the analysts are looking for a loss per share of $0.59 in the second quarter of fiscal year 2015 (2QFY15), down from earnings per share (EPS) of $0.11 in the same period last year. The EV giant’s revenue is forecasted to be $1.18 billion in the quarter, up from $857.51 million in the prior-year quarter.

Business news: during the quarter, the company introduced a referral program, three new versions for Model S, opened new stores, and added new battery partners, accelerated Gigafactory production, enhanced its Supercharger Network, and confirmed Model X deliveries. The investors should firstly keep an eye on the company’s guidance for the remaining two quarters, which will provide a better picture on its deliveries. It might notify the breakdown delivery targets for Model S and Model X. Tesla recently acquired more land in Nevada for Gigafactory’s production. The company will provide more details about the battery-producing factory in the upcoming earnings call i.e. first delivery upgrade of battery and total reservation details.

Analysts Recommendation: according to data collected by Bloomberg, out of 23 analysts who cover Tesla stock, 10 tag it as a Buy, seven rate it as a Hold, and five label it as a Sell. The consensus price objective on the stock is $295.20, representing 10.91% upside potential based on the stock’s last closing.

Analysts polled by Thomson Reuters on average are looking for a 35% year-over-year revenue gain to $1.17 billion for Q2. They see an adjusted 59-cent loss per share, below the 36-cent loss in Q1, as Tesla spends to produce the Model X SUV, and on its battery gigafactory and the Tesla Energy batteries division.

Analysts at I Know First are bearish on Tesla over the near-term with a bearish algorithmic forecast to support the technical and fundamental analysis of the company, as a pullback can be expected over the next couple of months.


Source: I Know First Research

This would be Tesla’s third straight quarterly loss, but Wall Street expects a return to profitability in Q3..