Rivian Automotive (RIVN.US) reported earnings for Q3 2022 yesterday after the close of the Wall Street session. While the US electric vehicle manufacturer reported a miss in revenue, it has also reported a smaller than expected adjusted loss per share. Q3 revenue came in at $536 million (exp. $551.6 million) while adjusted loss per share came in at $1.57 (exp. -$1.82). Net loss of $1.72 billion was wider than $1.23 billion reported in Q3 2021. End-of-the-quarter cash balance also dropped and stood at $13.8 billion at the end of Q3 2022, down from $15.5 billion at the end of Q2 2022. Company said, however, that it is confident that its cash hoard will last through 2025. Pre-orders for Rivian R1-series trucks and SUVs climbed from 98,000 during Q2 2022 earnings release in early-August to over 114,000 now.
However, in spite of those mixed headline results, shares of the company rallied over 6% in the premarket trading today. Guidance offered by the company can be named as a reason. While Rivian slashed its 2022 capital expenditure guidance from $2.0 billion to $1.75 billion, it retained vehicle production guidance. Rivian still targets to manufacture 25 thousand vehicles this year. This means a significant production ramp-up in the final quarter of the year given that Rivian manufactured around 14-15 thousand vehicles in Q1-Q3 2022 period. Moreover, the company said that as production volumes increase it has moved to shipping vehicles by rail rather than by trucks, which allows for cost reductions. Full-year EBITDA loss guidance was left unchanged at $5.4 billion.
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Open account Try demo Download mobile app Download mobile appRivian's shares are trading over 6% higher in premarket and current premarket quote suggest cash session opening at $29.84 - just slightly below the resistance zone ranging around $30.50 mark. Stock dropped below this zone and moved to the lowest level since early-July yesterday during a broad Wall Street sell-off but it looks like an attempt to climb back above this zone may be made today. Of course, it should be noted that US CPI print at 1:30 pm GMT may have a big impact on the market should we see a big deviation from market expectations and therefore impact of Rivian's earnings release on the stock price may be offset by non-company-specific factors.
Source: xStation5
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