Yahoo Finance Tesla (TSLA) to Report Q1 Earnings: Is a Beat in Store?
Tesla TSLA is set to post its first-quarter 2023 results on Apr 19 after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at 85 cents per share and $23.56 billion, respectively.
Tesla surpassed the Zacks Consensus Estimate for earnings in the last reported quarter on higher-than-expected revenues from the Energy Generation/Storage and Services/Other segments. Over the trailing four quarters, Tesla beat the Zacks Consensus Estimate on all occasions with the average being 23.55%. This is depicted in the graph below:
Tesla, Inc. Price and EPS Surprise
Tesla, Inc. price-eps-surprise | Tesla, Inc. Quote
Will the company be able to maintain its winning streak this time around as well? An earnings beat looks likely for Tesla.
Estimate Revisions
The Zacks Consensus Estimate for first-quarter earnings per share has remained unchanged in the past seven days. The estimate for the bottom line implies a year-over-year decline of 20.56%. The Zacks Consensus Estimate for quarterly revenues suggests a year-over-year rise of 25.62%.
Factors at Play
The company delivered 422,875 (412,180 Model 3 and Y and 10,695 Model S and X) cars worldwide in the first quarter, up 36.4% from the year-ago quarter and 4% from the prior quarter. Total deliveries also surpassed the Zacks Consensus Estimate of 412,884 units amid multiple price changes.
Starting this year, Tesla offered steep discounts on its models in the United States, China and elsewhere to spur demand, which is also likely to have elevated automotive revenues to some extent. The automaker is riding on the robust demand for Models 3 and Y, which form a major chunk of its total deliveries. Tesla delivered 412,180 Model 3/Y in the to-be-reported quarter, topping the consensus mark of 390,820 units. Stronger-than-expected deliveries for Model 3/Y are expected to play in favor of Tesla’s upcoming results.
The consensus mark for Energy Generation and Storage revenues is pegged at $1,045 million, suggesting a rise from $616 million recorded in the same quarter of 2022. The consensus estimate for revenues for Tesla’s Services and Other segment is pegged at $1,605 million, implying a rise from $1,279 million recorded in the same quarter of 2022.
What Does Our Model Say?
Our proven model predicts an earnings beat for Tesla this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the case here, as you will see below.
Earnings ESP: Tesla has an Earnings ESP of +1.22%. This is because the Most Accurate Estimate is pegged 1 cent higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Tesla currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With the Favorable Combination
Here are a few players from the auto space that, according to our model, have the right combination of elements to post an earnings beat for the quarter to be reported:
Autoliv ALV will release first-quarter 2023 results on Apr 21. The company has an Earnings ESP of +4.59% and a Zacks Rank #2.
The Zacks Consensus Estimate for Autoliv’s to-be-reported quarter’s earnings and revenues is pegged at 82 cents per share and $2.21 billion, respectively. ALV surpassed earnings estimates in two of the trailing four quarters and missed in the remaining two in the fiscal year 2022, the average surprise being 9.79%.
Polaris PII will release first-quarter 2023 results on Apr 25. The company has an Earnings ESP of +3.85% and a Zacks Rank #3.
The Zacks Consensus Estimate for Polaris’s to-be-reported quarter’s earnings and revenues is pegged at $1.73 per share and $1.91 billion, respectively. PII surpassed earnings estimates in three of the trailing four quarters and missed in one in the fiscal year 2022, the average surprise being 2.16%.
Lear LEA will release first-quarter 2023 results on Apr 27. The company has an Earnings ESP of +2.57% and a Zacks Rank #3.
The Zacks Consensus Estimate for Lear’s to-be-reported quarter’s earnings and revenues is pegged at $2.47 cents per share and $5.28 billion, respectively. LEA surpassed earnings estimates in all the trailing four quarters in fiscal year 2022, the average surprise being 17.12%.
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Autoliv, Inc. (ALV) : Free Stock Analysis Report
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Polaris Inc. (PII) : Free Stock Analysis Report
