Shares of Canoo (GOEV) gained in after-hours trading after the electric vehicle company reported earnings for its second quarter of Fiscal Year 2024. Earnings per share came in at -$0.61, which beat analysts’ consensus estimate of -$0.87 per share. In addition, revenue hit $0.61 million. This missed analysts’ expectations of $1.56 million.
Looking forward, management now expects revenue and cash flow for Fiscal Year 2024 to be in the ranges of $50 million to $100 million and $45 million to $75 million, respectively. For reference, analysts were expecting $64.71 million in sales.
However, with only $19 million in cash at the end of the quarter, or $33 million slightly after the quarter’s end, it’s clear that the company will need to turn to outside financing options to keep itself afloat. In fact, according to TipRanks’ Bulls Say, Bears Say tool, bearish analysts believe that Canoo needs to raise between $200 million and $250 million. As a result, current investors are going to see their holdings eventually diluted.
Is GOEV Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on GOEV stock based on two Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. After an 87% decline in its share price over the past year, the average GOEV price target of $5 per share implies more than 274% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
