Examining the Future: Worksport's Earnings Outlook

Worksport WKSP is set to give its latest quarterly earnings report on Thursday, 2025-05-15. Here's what investors need to know before the announcement.

Analysts estimate that Worksport will report an earnings per share (EPS) of $-1.05.

Anticipation surrounds Worksport's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Earnings Track Record

During the last quarter, the company reported an EPS beat by $0.26, leading to a 3.88% increase in the share price on the subsequent day.

Here's a look at Worksport's past performance and the resulting price change:

Market Performance of Worksport's Stock

Shares of Worksport were trading at $3.48 as of May 13. Over the last 52-week period, shares are down 41.92%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.

Analyst Insights on Worksport

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Worksport.

Analysts have given Worksport a total of 2 ratings, with the consensus rating being Buy. The average one-year price target is $11.5, indicating a potential 230.46% upside.

Comparing Ratings with Competitors

The below comparison of the analyst ratings and average 1-year price targets of REE Automotive and Stoneridge, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for REE Automotive, with an average 1-year price target of $11.75, suggesting a potential 237.64% upside.
• Analysts currently favor an Outperform trajectory for Stoneridge, with an average 1-year price target of $16.0, suggesting a potential 359.77% upside.

Key Findings: Peer Analysis Summary

The peer analysis summary presents essential metrics for REE Automotive and Stoneridge, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

Worksport ranks highest in Revenue Growth among its peers, with a significant increase. However, it has the lowest Gross Profit margin. In terms of Return on Equity, Worksport is in the middle compared to its peers.

Discovering Worksport: A Closer Look

Worksport Ltd through its subsidiaries, designs, develops, manufactures, and owns the IP on a variety of tonneau covers, solar integrations, and NP (Non-Parasitic), Hydrogen-based true green energy solutions for the sustainable, clean energy, and automotive industries. The company's product includes soft vinyl tonneau covers and hard aluminum tonneau covers. It operates in two reporting segments for financial reporting purposes: Hard Tonneau Covers and Soft Tonneau Covers. Geographically, the company operates in Canada, United States and Other Countries.

Unraveling the Financial Story of Worksport

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3 months period, Worksport showcased positive performance, achieving a revenue growth rate of 248.81% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: Worksport's net margin is impressive, surpassing industry averages. With a net margin of -146.89%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Worksport's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -25.47%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Worksport's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -16.97%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: With a below-average debt-to-equity ratio of 0.32, Worksport adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for Worksport visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.