Fisker falls after 3Q miss, filed to delay 10-q filing
Shares of Fisker Inc. (NYSE:FSR) are trading down nearly 20% Tuesday morning after the electric automaker reported a 3Q earnings miss and announced a cut in production guidance.
Barclays reiterated their Underweight rating on Fisker, and cut their 12-month price target to $4.00 (From $5.00) following the “difficult 3Q print”.
Fisker reported 3Q revenues of $72M, missing the consensus estimate of $143M by nearly half. EBIT of -$100M also missed the consensus estimate of -$68mn. However, EBIT results were more in-line with Barclays’ estimate of -$93mn. EPS was reported at ($0.27), $0.05 below the consensus estimate.
FSR cut production guidance, narrowing estimates down to a range between 13,000 to 17,000 vehicles, down from the previous estimate of 20,000 to 23,000. A midpoint of 15,000, indicates an anticipated production of around 9,000 vehicles in the 4Q, nearly doubling the production rate seen in the 3Q.
While FSR seems to be making headway in ramping up production, management trimmed their 3Q forecast primarily to manage inventory and deliveries.
They're facing some logistics issues, causing a gap between produced and delivered vehicles. Analysts at Barclays believe the steadier production rate reflects the tough EV demand situation, at least to some extent.
“Put another way, making, selling, delivering, and servicing consumer vehicles is rather complex, not to mention accounting for and operating it. While FSR can likely solve these challenges in time, we believe it will come with a considerable uptick in headcount and spending requirements,” wrote analysts in a note.
To solve their logistic issues, analysts believe Fisker will likely require additional capital, and accordingly, further dilution.
In early July, FSR
Read more on investing.com
