Canoo to Report Q1 Earnings: What's in the Cards?

Canoo Inc. GOEV is scheduled to release first-quarter 2024 results on May 14, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter's loss per share and revenues is pegged at 86 cents and $1.45 million, respectively.
The consensus mark for Canoo's first-quarter loss per share has narrowed by $1.21 in the past 60 days. The electric vehicle maker's bottom-line estimates imply growth of 78.01% from the year-ago reported figure. In the last reported quarter, it posted a net loss of $1.73 per share, narrower than the Zacks Consensus Estimate of a loss of $1.78 and the year-ago loss of $5.98.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for GOEV. 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 not the case here, as elaborated below.
Earnings ESP: Canoo has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is in line with the Zacks Consensus Estimate.
Zacks Rank: GOEV currently sports a Zacks Rank #1.

Things to Note

Canoo's upbeat 2024 outlook sparks optimism. The company expects annual revenue for 2024 in the range of $50-$100 million, up from $886,000 reported in 2023. Jazeera Paints plans to integrate GOEV's 20 EVs into its fleet in 2024, with the potential to scale up by adding up to 180 vehicles. The company's Oklahoma City Manufacturing facility is anticipated to deliver up to $70 million in vehicle cost savings and duty deferrals in 2024 and 2025.
The EV maker incurred a loss from operations of $63.9 million and $267.8 million in the fourth quarter and 2023, narrower than the loss of $83.2 million and $506.8 million reported in the third quarter and 2022, respectively. Losses are likely to have narrowed in the to-be-reported quarter, enhancing Canoo's performance.
Discouragingly, the development of new vehicle models might have necessitated higher capital expenditure than initially anticipated. Furthermore, Canoo might have faced substantial costs related to establishing and maintaining effective sales channels and a robust service and maintenance network for its EVs. High capital requirement is likely to have weighed on the company's cash flow in the first quarter.

Key Predictions for Other Players

AutoZone, Inc. AZO has an Earnings ESP of +0.26% and a Zacks Rank #3 at present. The company is scheduled to post third-quarter fiscal 2024 earnings on May 21. The Zacks Consensus Estimate for earnings is pegged at $35.75 per share.

AZO surpassed earnings estimates in each of the trailing four quarters, the average surprise being 7.69%.
Advance Auto Parts, Inc. AAP has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. The company is slated to post first-quarter 2024 earnings on May 29. The Zacks Consensus Estimate for earnings is pegged at 69 cents per share.
AAP missed earnings estimates in each of the trailing four quarters, the average negative surprise being 148.19%.
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