Tesla Inc. is scheduled to report earnings on Wednesday after the bell, with Wall Street worried it will be a “difficult” quarter for the electric-vehicle maker amid ongoing supply-chain snags and pandemic-related factory shutdowns. “We fully expect a difficult (second quarter), based on continuing supply-chain issues and factory shutdowns,” said Bill Selesky, an analyst with Argus Research.
Tesla TSLA, 0.55% earlier this month reported a quarter-on-quarter fall in deliveries, its proxy for sales, leading some analysts to cut their expectations for the EV maker’s quarter. But some of the issues facing Tesla are already accounted for in Wall Street estimates, and investors are aware, Selesky said. He said he expects Tesla to “modestly” beat expectations thanks to reduced costs and relatively strong margins.
Dan Levy at Credit Suisse said the “key question” for investors next week will be “the magnitude of margin pressure from the Shanghai shutdown” due to China’s “COVID zero” policies. Levy said he expects margin recovery in the second half of the year as “Tesla ramps on volume.”
Here’s what to expect:
Earnings: Analysts polled by FactSet expect Tesla to report adjusted earnings of $1.82 a share in the second quarter, which would compare with adjusted earnings of $1.45 a share in the second quarter of 2021. Estimize, a crowdsourcing platform that gathers estimates from Wall Street analysts as well as buy-side analysts, fund managers, company executives, academics and others, is expecting an adjusted profit of $2.05 a share for Tesla.
Revenue: The analysts surveyed by FactSet are calling for sales of $16.54 billion for Tesla, which would compare with $12 billion in the second quarter of 2021. Estimize is expecting $17.1 billion in revenue for the quarter.
Full story here- https://www.marketwatch.com/story/tesla-earnings-preview-wall-street-braces-for-difficult-second-quarter-11657823831?mod=home-page
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