Proterra (NASDAQ:PTRA), the electric bus maker, revealed two major problems in just the last few hours that sent its stock down over 50% in Thursday afternoon trading.
Proterra’s earnings report was a litany of misses. First, it posted an EPS loss of $0.50, where analysts expected a loss of just $0.25. Revenue came in at $79.99 million, which may have been enough to beat last year’s figure—by 16.9%—but it didn’t beat projections looking for $86.88 million. It’s somewhat understandable; Proterra built a new factory in that time. However, with analysts looking for $533.82 million in 2023, and Proterra itself expecting between $450 million and $500 million, that’s not a positive end result.
Worse, however, was Proterra’s alert via CEO Gareth Joyce, who noted: “When we file our 2022 10-K, it will include management’s and our auditor’s conclusion that there is substantial doubt about our ability to continue as a going concern.” While Joyce believes that an accord can be reached with its lenders, it’s going to have to hurry. Without such a solution, Proterra will have $170 million in loan notes come due, and that will cripple the firm.
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That catastrophic outlook is likely why insider sentiment at Proterra has turned Negative. Worse, substantial sales have already taken place; insiders sold $114,300 worth of Proterra stock in the last three months alone. That suggests that the people best placed to know about the company’s future are looking for the exits.