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Rivian's (RIVN) Q3 Loss Narrower Than Expected, Sales Rise

Zacks Equity Research
·4 min read

Rivian Automotive RIVN incurred a net adjusted loss of $1.57 a share in the third quarter of 2022, narrower than the Zacks Consensus Estimate of a loss of $1.78 a share. The bottom line also improved from the year-ago loss figure of $7.69 a share. Total revenues came in at $536 million, surpassing the consensus mark of $514 million. In the year-ago quarter, the EV maker reported revenues of $1 million in its first-ever quarterly results since going public. Third-quarter revenues improved from $364 million generated in the second quarter of 2022.

Rivian Automotive, Inc. Price, Consensus and EPS Surprise

Rivian Automotive, Inc. Price, Consensus and EPS Surprise
Rivian Automotive, Inc. Price, Consensus and EPS Surprise

Rivian Automotive, Inc. price-consensus-eps-surprise-chart | Rivian Automotive, Inc. Quote

Quarter Highlights

The company produced 7,363 vehicles during the quarter under review, up 67% from 4,401 in the second quarter of 2022. In the year-ago quarter, Rivian delivered 11 EVs in total. Deliveries jumped 47% sequentially to 6,584 units. The company’s net R1 preorder backlog in the United States and Canada was around 114,000 units as of Nov 7.

RIVN recorded a negative gross profit of $917 million during the quarter under review, deteriorating from $82 million in the year-ago period. The figure also worsened from the second-quarter 2022 negative gross profit of $704 million. Operating expenses rose to $857 million from $694 million in the year-ago period. The increase in expenses stemmed from stock-based compensation expenses and efforts associated with the firm’s R1 and RCV programs. Additionally, other advanced product development activities and investments in core in-vehicle technologies escalated the R&D costs that contributed to rising operating expenses. The figure, however, shrunk from $1,004 million in the previous quarter.

Rivian ended the quarter with $13.3 billion in cash and cash equivalents, down from $18.1 billion as of Dec 31, 2021 . Long-term debt totaled $1.23 billion as of Sep 30, almost flat with the Dec 31, 2021 level.  Net cash used in operating activities totaled $1.37 billion in the quarter compared with $0.68 billion in the year-ago period. Capex in the third quarter totaled $298 million compared with $467 million in the same period last year. Given the higher year-over-year net cash used in operating activities and massive capital spending, Rivian witnessed a negative free cash flow of $1.67 billion in the third quarter of 2022, which deteriorated from a negative $1.15 billion during the corresponding period of 2021.

RIVN has reaffirmed its target to produce 25,000 vehicles this year. It has also maintained its guidance of a negative adjusted EBITDA of $5,450 million for 2022. Meanwhile, capex forecast has been brought down to $1,750 million from $2,000 million estimated earlier. Although Rivian is focused on ramping production, it believes supply-chain bottlenecks will remain a hindrance.

Zacks Rank & Peer Releases

RIVN currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

Here’s a snapshot of some recent earnings releases of some EV makers.

EV magnate Tesla Inc. TSLA reported earnings of $1.05 a share in third-quarter, up from the year-ago figure of 62 cents and surpassing the Zacks Consensus Estimate of 95 cents. Tesla delivered its 7th consecutive beat this earnings season. Total revenues came in at $21,454 million, witnessing year-over-year growth of 56%. However, the top line lagged the consensus mark of $22,323 million.

Nikola NKLA incurred an adjusted loss per share of 28 cents in the third quarter, narrower than the Zacks Consensus Estimate of a loss of 56 cents but wider than the year-ago loss figure of 25 cents. It recorded revenues of $24.2 million, which crossed the consensus figure of $23 million.

Fisker Inc.’s FSR net loss per share of 49 cents in the third quarter was wider than the Zacks Consensus Estimate of a loss of 43 cents and the year-ago loss of 37 cents. It recorded revenues of $14 million, decreasing from the year-ago figure of $15 million.


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