© Reuters Rivian shares plunge on sharp fourth-quarter sales slump and weak outlook
By David Kirakosyan and Senad Karaahmetovic
Rivian Automotive Inc (NASDAQ:) shares fell about 7.5% on the company’s reported fourth-quarter results, with earnings of $663 million, well below consensus expectations of $729 million .
The adjusted ($1.73) is better than the consensus estimate ($1.96).
The company said its supply chain will continue to be a major limiting factor in production, and these challenges are expected to persist through 2023, but will be more predictable than what was experienced in 2022.
The company’s production forecast for fiscal 2023 fell short of analyst estimates. For the entirety of 2023, Rivian expects his 50,000 vehicles to be produced and his adjusted EBITDA to be ($4.3 billion).
Analysts at Goldman Sachs said electric vehicle (EV) makers had mixed results.
“While we continue to expect the company to improve its traction over the long term, we would like more visibility on its increased output and improved timeline to profitability, making the stock price more positive and a neutral rating. keep it up,’ they told the customer.Note.
Analysts at Truist have lowered their price target by $6 to $44 per share, but remain positive on RIVN stock.
“The stock price is likely to face pressure tomorrow, but the low FY23 guide is largely the result of RIVN’s cost-cutting initiatives, and the company reiterated its FY24 GM positive target. We see the sacrifice of NT production for the R1 & RCV profitability is an attractive value proposition,” they said in a note yesterday.