Tesla Motors, Inc.
) is set to report fourth-quarter 2013 results on Feb 19. In the
trailing four quarters it posted an average surprise of +35.30%.
Let's see how things are shaping up for this announcement.
Growth Factors This Quarter
Tesla recently revealed that vehicle sales in the fourth
quarter of 2013 were 20% higher than estimated. The company sold
and delivered 6,900 vehicles in the quarter, an improvement on
the guidance of 6,000 units. This is the highest sales recorded
The demand for Tesla's cars remains strong due to robust
performances and impressive designs. However, the electric
carmaker is investing significantly in product development and
expansion of its supercharger network, resulting in high research
and development (R&D) and selling, general and administrative
(SG&A) expenses. R&D and SG&A expenses are expected
to sequentially increase 25% and 20% respectively, in the fourth
quarter of 2013.
Our proven model does not conclusively show that Tesla is
likely to beat earnings this quarter. That is because a stock
needs to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. That is not the
case here, as you will see below.
The Earnings ESP, which represents the difference between the
Most Accurate Estimate and the Zacks Consensus Estimate, is
0.00%. This is because both the Most Accurate Estimate and Zacks
Consensus Estimate are currently at 4 cents.
Zacks Rank #1:
Tesla's Zacks Rank #1 (Strong Buy) when combined with a 0.00%
ESP, makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5
(Sell-rated stocks) going into the earnings announcement,
especially when the company is seeing negative estimate revisions
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
Dana Holding Corporation
) has Earnings ESP of +4.44% and holds a Zacks Rank #3 (Hold).
Dana Holding will be reporting fourth-quarter 2013 earnings on
Feb 20, 2014.
) has Earnings ESP of +5.48% and holds a Zacks Rank #3. Visteon
will be reporting fourth-quarter 2013 earnings on Feb 25,
Power Solutions International, Inc.
) has Earnings ESP of +5.00% and holds a Zacks Rank #3. Power
Solutions will be reporting fourth-quarter 2013 earnings on Feb
DANA HOLDING CP (DAN): Free Stock Analysis
POWER SOL INTL (PSIX): Free Stock Analysis
TESLA MOTORS (TSLA): Free Stock Analysis
VISTEON CORP (VC): Free Stock Analysis Report
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