By Lucid Motors is set to release its latest earnings report, and investors should be prepared for potential volatility in the stock price. Here’s what to watch for:
Revenue and Sales Expectations
According to FactSet, Lucid is expected to report a per-share loss of 30 cents with sales around $180 million. This is a decrease from the 28-cent loss and $256 million in sales reported a year ago. The company’s revenues have been impacted by lower delivery volumes.
Delivery Numbers and Pricing
In the fourth quarter, Lucid delivered 1,734 units, down from 1,932 units delivered in the same quarter last year. The average price per car is expected to decrease to approximately $93,000, compared to nearly $150,000 in the previous year.
2024 Outlook
Despite the challenges, Lucid delivered 6,001 units in 2023, up from 4,369 units in 2022. Analysts have high expectations for 2024, with an estimated 12,000 units to be delivered. Any guidance from management regarding volumes and cash flow will be closely watched by investors.
Cash Flow Projections
Wall Street projects a cash use of about $1 billion for the fourth quarter and $3.2 billion for the full year 2024. Lucid ended the third quarter with approximately $4.9 billion on hand.
Market Reaction and Stock Movement
Earnings, cash flow, and delivery guidance can all significantly impact the stock price following the earnings release. Options markets suggest a potential 17% movement in the stock price post-earnings. On average, shares have moved about 9% following the past four quarterly reports.
Conference Call Details
Management will host a conference call at 5:30 p.m. Eastern time on Wednesday to discuss the results and provide insights into the year ahead.
Stock Performance
Ahead of the earnings report, Lucid stock has declined by approximately 62% over the past year. In contrast, the S&P 500 and Nasdaq Composite indices have shown significant gains during the same period.
Stay tuned for Lucid’s earnings call to gain more clarity on the company’s performance and future prospects.
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