Tesla Motors Q2 Earnings Beat, Shares Soar - Analyst Blog

By
A A A

Shares of Tesla Motors, Inc. ( TSLA ) got a major boost after the company posted a narrower loss in the second quarter of 2013. The Palo Alto, CA-based automaker logged a loss of $30.5 million or 26 cents per share in the reported quarter lower than a loss of $105.6 million or $1.00 per share recorded in the year-ago quarter.

Barring one-time items other than stock-based compensation expenses, earnings were 5 cents per share in the quarter compared with the prior-year loss of $1.00 a share. That compares favorably with the Zacks Consensus Estimate of a loss of 36 cents a share.

Revenues jumped manifold year over year to $405.1 million in the quarter from $26.7 million a year ago, beating the Zacks Consensus Estimate of $395 million.

Production went up 25% to 500 vehicles per week and the company delivered 5,150 cars in the quarter. Tesla benefited from rising demand for Model S, which in turn was driven by geographic expansion and higher sales of powertrain component sales to Toyota Motor Corp. ( TM ) for the RAV4 EV.

Revenues in the Automotive sales segment jumped to $401.5 million in the quarter from $22.1 million a year ago. Revenues in the Development services (produces electric vehicle, powertrain components and systems for other automobile manufacturers) declined 21.6% to $3.6 million from $4.6 million a year ago.

Tesla's shares jumped as much as around 15% in pre-market trading, reflecting the better-than-expected results.  

Financial Position

Tesla had cash and cash equivalents of $746.1 million as of Jun 30, 2013, compared with $201.9 million as of Dec 31, 2012. Long-term debt was $578.7 million as of Jun 30, 2013, versus $452.3 billion at the end of 2012.

Cash flow from operating activities increased substantially to $25.9 million in the first half of 2013 from cash outflow of $127.6 million in the same period of 2012. Capital expenditures fell to $98.2 million from $112.8 million in the first half of 2012.

Guidance

Tesla anticipates delivering little over 5,000 Model S vehicles in the third quarter of 2013 and 21,000 vehicles globally in 2013. Gross margin will remain in the low 20% range for the second half of 2013 while adjusted gross margin is expected to improve to reach the company's target of 25%.

Further, the company believes that research and development expenses will increase significantly due to accelerated product development. SG&A expenses will also increase in future due to hike in retail locations, service centers and Supercharger facilities. Capital expenditures are expected to be $150 million for the second half of 2013.

Tesla designs and manufactures electric vehicles and electric vehicle power train components for partners including Toyota and Daimler AG ( DDAIF ). Recently, shares of Tesla hit a new 52-week high of $145.73 on Aug 6.

Tesla retains a Zacks Rank #2 (Buy).

Ford Motor Co. ( F ) a Zacks Rank #2 (Buy) stock is performing well in the industry where Tesla operates.



DAIMLER AG (DDAIF): Get Free Report

FORD MOTOR CO (F): Free Stock Analysis Report

TOYOTA MOTOR CP (TM): Free Stock Analysis Report

TESLA MOTORS (TSLA): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: DDAIF , F , TM , TSLA

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

THE COST OF HOUSE FLIPPING
THE COST OF HOUSE FLIPPING          

Stocks

Referenced

83%
76%
78%

Most Active by Volume

83,946,369
  • $16.40 ▼ 1.20%
65,919,147
  • $102.99 ▲ 0.51%
63,004,409
  • $42 ▲ 4.53%
42,618,740
  • $7.93 ▼ 2.94%
41,388,613
  • $78.37 ▼ 0.41%
40,438,996
  • $3.81 ▲ 14.76%
39,835,674
  • $12.32 ▲ 2.41%
38,147,728
  • $12.83 ▼ 2.80%
As of 10/22/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com