Shares of Workhorse Group Inc. (ticker: WKHS) took a significant 5.1% dive in premarket trading on Tuesday following the electric vehicle maker’s announcement of a second-quarter revenue miss and a reduction in its full-year outlook.
Workhorse Group reported a net loss of $23.02 million, or 12 cents per share, for the quarter ending June 30. This is compared to a loss of $21.16 million, or 13 cents per share, in the same period last year. Although per-share losses narrowed, the increase in the number of shares used for the calculation caused net losses to escalate. The total number of shares rose to 185.66 million from 159.11 million.
Revenue Missed Expectations
While revenue increased to $3.97 million from $12,555, it fell short of the FactSet consensus of $14.8 million. This unexpected shortfall has prompted the company to make adjustments to its revenue guidance for the full year.
Revised Annual Outlook
Workhorse Group now anticipates its revenue for 2023 to fall between $65 million and $85 million, compared to its previously estimated range of $75 million to $125 million. The measure was revised due to longer-than-expected certification testing that may postpone the W56 production launch by approximately 45 days.
Over the past three months, Workhorse Group’s stock has experienced a notable rally of 13.5%. In contrast, the S&P 500 has gained 9.2% during the same period.
It is crucial for Workhorse Group to address these challenges effectively to regain investor confidence and propel future growth.