Luxury electric car manufacturer Lucid (NASDAQ: LCID) will be reporting earnings tomorrow after the bell. Here’s what investors should know.
Lucid beat analysts’ revenue expectations by 3.7% last quarter, reporting revenues of $200 million, up 45.2% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ sales volume estimates but a significant miss of analysts’ adjusted operating income estimates.
Is Lucid a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Lucid’s revenue to grow 34.6% year on year to $211.6 million, a reversal from the 39% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.29 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Lucid has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Lucid’s peers in the automobile manufacturing segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Ford delivered year-on-year revenue growth of 4.9%, beating analysts’ expectations by 5.5%, and General Motors reported revenues up 11%, topping estimates by 8%. Ford traded down 7.4% following the results while General Motors was also down 9.6%.
Read our full analysis of Ford’s results here and General Motors’s results here.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the automobile manufacturing stocks have shown solid performance, the group has generally underperformed, with share prices down 5.8% on average over the last month. Lucid is up 8.7% during the same time and is heading into earnings with an average analyst price target of $2.97 (compared to the current share price of $3.01).
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