Electric vehicle producer Nikola (NKLA) will release its Q2 results on August 9. Wall Street analysts expect the company to report a loss of $2.75 per share for Q2 2024, versus a $6 per share loss reported in the prior-year quarter. Meanwhile, analysts expect revenues of $24.66 million, reflecting a 61% year-over-year increase, according to TipRanks’ data.
Despite a steep decline of over 89% in the stock over the past year, there’s potential for a turnaround driven by strong Q2 results. Analysts believe the company could show sustained progress in revenue and earnings for the quarter.
Interestingly, the company has missed the consensus EPS estimates only once out of the last nine quarters.
Key Takeaways from TipRanks’ Bulls & Bears Tool
According to TipRanks’ Bulls Say, Bears Say tool pictured below, bulls are optimistic about Nikola, noting that Q2 deliveries surpassed guidance and estimates, marking a second consecutive quarter of growth. They also noted that the company is witnessing strong demand for its trucks, highlighted by 339 unredeemed HVIP (Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project) voucher requests in California.
It’s important to highlight that these HVIP vouchers are offered to incentivize the purchase of hybrid and zero-emission vehicles, like hydrogen fuel cell trucks. The high number of unredeemed requests indicates strong demand for these vehicles.
However, bears are wary of Nikola due to management’s withdrawal of FCEV delivery guidance amid supplier cost uncertainty. They also remain concerned as the truck delivery forecast has been reduced to 300-350 units for FY2024.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 14.32% move in either direction.
Is NKLA Stock a Buy?
Overall, the Street has a Moderate Buy consensus rating on NKLA, alongside an average price target of $22.80. The price target points toward a 12-month gain of about 200%. However, analysts’ views on the stock are likely to change once the company reports its Q2 earnings tomorrow.
