Tesla (TSLA) Earnings and Revenues Miss Estimates in Q2

Tesla, Inc. TSLA reported loss per share of $1.12 in second-quarter 2019, wider than the Zacks Consensus Estimate of loss of 54 cents. The company recorded loss of $3.06 per share in the prior-year quarter.

During the reported quarter, net loss attributable to common shareholders amounted $408.3 million compared with the year-ago net loss of $717.5 million.

Revenues increased to $6.35 billion from $4 billion registered in second-quarter 2018. However, the figure missed the Zacks Consensus Estimate of $6.38 billion.

During the quarter under review, Tesla reported record delivery of 95,356 vehicles and production of 87,048 units. This surpassed the previous records achieved in fourth-quarter 2018.

Total automotive revenues, including that from automotive sales and leasing, increased 60% year over year to $5.38 billion in the reported quarter.

Energy generation and storage revenues decreased from $374.4 million in second-quarter 2018 to $368.2 million in the reported quarter. Services and other revenues increased significantly year over year to $605.1 million.

Tesla’s second-quarter 2019 automotive gross margin was 18.9%, decreasing 168 basis points (bps) from second-quarter 2018.

Energy generation and storage gross margin decreased 20 bps to 11.6% on a year-over-year basis.

Tesla, Inc. Price, Consensus and EPS Surprise

 

Tesla, Inc. Price, Consensus and EPS Surprise

Tesla, Inc. price-consensus-eps-surprise-chart | Tesla, Inc. Quote

Financial Position

Tesla had cash and cash equivalents of $4.95 billion as of Jun 30, 2019, compared with $2.24 billion, as of Jun 30, 2018.

Net cash provided by operating activities amounted to $863.6 million in second-quarter 2019 compared with $129.7 million of net cash used in second-quarter 2018. Capital expenditure declined to $249.7 million from $609.8 million in the year-ago quarter.

Model 3 Update

In second-quarter 2019, Tesla reported record Model 3 delivery of 77,634. During the quarter, the production rate of Model 3 continued to improve. The company targets to produce 10,000 vehicles of each model by the end of 2019.

Outlook

Tesla is making efforts to raise vehicle deliveries. This is in sync with its previous delivery guidance of 360,000-400,000 vehicles in 2019. Importantly, the company expects positive quarterly free cash flow. It anticipates 2019 capital expenditure to be about $1.5-$2.0 billion, marking a reduction from the previous guidance.

Zacks Rank & Stocks to Consider

Tesla currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the auto space are Copart, Inc CPRT, CarMax, Inc KMX and Advance Auto Parts, Inc. AAP. While Copart sports a Zacks Rank #1 (Strong Buy), CarMax and Advance Auto Parts has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Copart has an expected long-term growth rate of 20%. In the past six months, shares of the company have shot up 59.3%.

CarMax has an expected long-term growth rate of 12.6%. In the past six months, shares of the company have rallied 47.9%.

Advance Auto Parts has an expected long-term growth rate of 11.6%. In the past six months, shares of the company have improved 2.3%.

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

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