Yahoo Finance Why Is Tesla (TSLA) Up 11.1% Since Last Earnings Report?
A month has gone by since the last earnings report for Tesla (TSLA). Shares have added about 11.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Tesla due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Tesla Q1 Earnings Miss Estimates
Tesla posted first-quarter adjusted EPS of 45 cents, which missed the Zacks Consensus Estimate of 46 cents and also declined from the year-ago figure of 85 cents. This marked the third earnings miss in a row for the company, following 10 straight quarters of beat. Total revenues of $21.3 billion missed the consensus mark of $22.6 billion and declined 9% year over year. The company remained cautious about its vehicle volume growth rate for 2024, which is expected to be noticeably lower than 2023.
Key Takeaways
Tesla’s first-quarter production totaled 433,371 units (412,376 Model 3/Y and 20,995 other models), which declined 2% year over year and missed our estimate of 474,571 units. The company delivered 386,810 vehicles, reflecting a year-over-year decline of 9% and lagging our estimate of 439,292 units. The Model 3/Y registered deliveries of 369,783 vehicles, marking a year-over-year decline of 10% and missing our projection of 413,323 units.
Total automotive revenues of $17.38 billion were down 13% year over year and lagged our estimate of $20.87 billion. The reported figure also included $442 million from the sale of regulatory credits for electric vehicles, which decreased 15.2% year over year. Automotive sales, excluding revenues from leasing and regulatory credits, totaled $16.46 billion, missing our projection of $19.85 billion.
Automotive gross profit came in at $3.2 billion. Automotive gross margin came in at 18.5%, which declined from 21.1% reported in the first quarter of 2023 and missed our forecast of 18.6%. Tesla’s operating margin declined 592 basis points year over year to 5.5% in the quarter under discussion and also lagged our estimate of 8.2%.
Energy Generation and Storage revenues came in at $1.64 billion in first-quarter 2024, which was higher than the year-ago quarter’s figure of $1.53 billion but missed our estimate of $1.84 billion. Notably, energy storage deployments came in at 4.05 GWh, falling short of our projection of 4.2 GWh.
Services and Other revenues were $2,288 million, which increased 25% year over year and topped our estimate of $2,273.7 million. Supercharging, part sales, used vehicle sales and merchandise sales drove growth on a year-over-year basis.
Financials
Tesla had cash/cash equivalents/investments of $26.86 billion as of Mar 31, 2024, compared with $29.1 billion as of Dec 31, 2023. Long-term debt and finance leases, net of the current portion, totaled $2,899 million, up from $2,857 million as of Dec 31, 2023.
Net cash provided by operating activities amounted to $242 million in first-quarter 2024. Capital expenditure totaled $2.77 billion in the quarter under review. Tesla registered a negative free cash flow of $2.53 billion during the reported quarter against a positive free cash flow of $441 million generated in the year-ago period.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
Currently, Tesla has a poor Growth Score of F, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Tesla has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
