Tesla Q2 Earnings: What to Expect
Earnings season is always an exciting time to be an investor, with companies finally pulling the curtain back and unveiling what’s transpired behind closed doors.
As usual, the big banks opened the season, with things shifting into a higher gear this week.
We’ll hear from the highly-coveted Tesla TSLA on Wednesday after the market's close. We’re all highly familiar with Tesla, the undisputed leader in EVs and one of the best-performing stocks of the last decade.
But how does the company stack up heading into its quarterly release? Let’s take a closer look.
Quarterly Expectations
Analysts have been bullish for the quarter to be reported, with the $0.83 per share estimate being revised nearly 4% higher across the last several months. The quarterly estimate suggests year-over-year growth of almost 10%.
Image Source: Zacks Investment Research
In addition, our consensus revenue estimate presently stands at $24.9 billion, nearly 50% higher than year-ago sales of $16.9 billion. The company’s revenue growth has been rapid, as we can see illustrated in the chart below.
Image Source: Zacks Investment Research
Of course, the key metric for Tesla is the company’s EV production/delivery numbers. The company unveiled its production and delivery numbers recently, and the market was impressed; Tesla delivered over 466,000 EVs and produced nearly 480,000 throughout Q2, representing a quarterly record.
Quarterly Performance & Valuation
Tesla has consistently exceeded bottom line expectations, surpassing the Zacks Consensus EPS Estimate in nine consecutive quarters. In its latest release, the company beat EPS expectations by 2.5% and delivered a slight sales miss.
Tesla shares are undoubtedly expensive, reflecting the premium investors have to fork up given the company’s strong growth and standing. Shares currently trade at an 8.9X forward price-to-sales (F1), well above the 7.3X five-year median and the Zacks Autos sector average of 0.9X.
Image Source: Zacks Investment Research
Bottom Line
With earnings season ramping up, investors will have plenty of quarterly prints to sort through in the coming days.
And, as expected, many eyes will be on Tesla TSLA when it reveals its quarterly results on Wednesday after the market’s close.
Analysts have primarily been bullish for the quarter to be reported, with the quarterly EPS estimate enjoying positive revisions over the last several months. In addition, the company announced its production/delivery numbers, which came in nicely above expectations and represented another quarterly record.
Heading into the release, Tesla is a Zacks Rank #3 (Hold) with an Earnings ESP of +2.9%.
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