Electric vehicle (EV) maker Rivian Automotive (RIVN) will release its Q4 financials on February 20. RIVN stock is down nearly 9% over the past year. Production delays, weak demand, supply constraints, ongoing cash burn, and increasing competition from its rivals have caused this drop. Wall Street analysts expect the company to report a loss of $0.68 per share for Q4 2024, lower than the loss of $1.36 per share in the prior-year quarter. Further, revenues are expected to rise by 6% from the same quarter last year, reaching $1.40 billion, according to data from the TipRanks Forecast page.
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Importantly, Rivian has missed earnings estimates for four straight quarters, reflecting the struggles in the EV market.
Analyst Views on RIVN Ahead of Q4 Results
Ahead of RIVN’s Q4 results, Bernstein analyst Daniel Roeska reiterated his Sell rating on the stock with a $6.10 price target. The firm cites slow growth, high cash burn, and dilution from its Volkswagen (VWAGY) joint venture (JV) as key risks. The firm sees the JV helping RIVN with funding but says it also cuts shareholder value by 47%.
On the financial front, the firm expects the company to report losses, with earnings far below forecasts. It contends that even if Rivian successfully launches its new models, the company isn’t expected to break even on EBITDA until 2029 and free cash flow until 2030.
Further, Bernstein sees Rivian’s small scale and brand as hurdles in the tough EV market.
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 13.85% move in either direction.
Is Rivian Stock a Buy or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on RIVN stock based on 2 Buys, seven Holds, and two Sells assigned in the past three months, as indicated by the graphic below. The analysts’ average price target on WMT stock of $13.74 implies a downside potential of 4.85%.
