- DigiTimes reports that Apple is in talks with Rivian.
- RIVN shares have plummeted from an 8% rise ahead of first-quarter results.
- Rivian will release results for the quarter ending in March on Tuesday after the market opens.
- Wall Street expects adjusted earnings per share of $1.16 on revenue of $1.17 billion.
The actions of rivian (RIVN) They were unable to stem the initial wave of investor buying on Tuesday, ahead of the presentation of their quarterly results after the close. Rivian shares opened up more than 8% on Tuesday, but quickly gave up those price levels and are trading flat at the time of writing.
Gains hit more than 10% in the pre-market session as traders expect strong volatility ahead of first-quarter results. The Dow Jones Index, S&P 500 and Nasdaq Composite were advancing between 0.1% and 0.3% at the time of writing.
Rivian Earnings Outlook
Not much is expected from Rivian in terms of profits. Simply put, the electric vehicle creator is still in the early stages of its S-curve. Rivian continues to require large, loss-making investments at this stage of production, and the consensus heading into the earnings call is $1.16 in adjusted earnings per share (EPS). This figure compares to $1.25 in the same quarter a year ago.
Rivian delivered 13,588 vehicles in the first quarter, compared to the previous forecast of 11,893, so revenue should at least beat the Wall Street consensus for the first quarter of $1.17 billion. This figure contrasts with the $661 million in sales the previous year.
CEO RJ Scaringe expects to produce 57,000 vehicles in 2024, and deliveries should approach that figure.
The most fascinating aspect of the earnings call will undoubtedly be questions from analysts about a recent DigiTimes article exposing rumors that Apple (AAPL) is considering a possible partnership with Rivian. The creator of the iPhone tried to produce his own electric vehicle in the last half decade, but earlier this year he abandoned the project.
At the moment, neither company has addressed the rumor, but it could have to do with autonomy or other software programs such as driver assistance. Rivian, of course, already has its long-term agreement with Amazon (AMZN)who has a long-term order for delivery vans.
Rivian had more than $9 billion in cash since its IPO at the end of 2023, so analysts will gauge how much that has been reduced at the end of the quarter. A sales company claims Rivian has enough fuel to run until 2026.
But much of the talk about the results will revolve around cost reductions and the outlook for demand, which has been stagnant this year for most electric vehicle makers. For example, Tesla (TSLA) has just presented its first quarter with a decrease in deliveries.
“We would anticipate a reiteration of fiscal 24-month guidance as we seek additional details on cost reductions and other margin-enhancing factors heading into the second half of the year,” the Truist Securities team wrote.
Other questions from analysts will likely concern the $827 million in funding from the state of Illinois that Rivian received last week. The financial aid package will allow Rivian to expand its factory in Normal, Illinois.
“The state's support will allow us to quickly bring our mid-size SUV, R2, to market and offer even more EV options to consumers,” Scaringe said in a statement.
Rivian recently hired Javier Varela as its new director of operations, from Volvo, where he held a similar position.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
