Fisker Reports Earnings Beat, But Sales and Production Numbers Disappoint

Fisker (ticker: FSR) released its earnings report on Friday morning, surpassing analyst expectations. However, the news was not entirely positive, as sales figures fell well below Wall Street projections. The company also revised its production guidance downward. Nevertheless, the stock experienced a temporary increase due to events from the previous night.

Sales Figures

Fisker reported a loss of 25 cents per share, generated from $825,000 in sales. Analysts had predicted a loss of 27 cents from $48.9 million in sales. While the loss was smaller than anticipated, it is worth noting that start-up companies with limited sales can often experience unpredictable financial performance. The significant surprise lies in the sales figure itself.

Production Numbers

During the quarter, Fisker and its partners manufactured 1,022 units of the Ocean SUV, falling short of the initially planned range of 1,400 to 1,700 units. Moreover, only a mere 11 units were delivered, with European customers accounting for this small fraction of the total.

Looking ahead, the company provided an updated production forecast of 20,000 to 23,000 units for 2023. This figure has been significantly reduced from the previous estimates given by management in May, which projected a range of 32,000 to 36,000 vehicles. Notably, these May projections themselves were a downgrade from the earlier target set in February, aiming for 42,000 to 43,000 units.

A statement from Fisker’s Q2 earnings press release: “A couple of suppliers encountered challenges in meeting the targeted Q2 levels. However, the company is fully committed to collaborating closely with all suppliers to ensure a swift ramp-up.”

Full-Year Sales Outlook

For the full year, Fisker expects sales to amount to approximately $565 million to $640 million. This guidance falls significantly below the market’s expectations of around $1.3 billion.

Market Reaction

Despite the disappointing production numbers, Fisker’s stock saw a 3.1% increase in early trading on Friday, reaching $6.56 per share. In comparison, S&P 500 and Nasdaq Composite futures experienced smaller gains of about 0.3% and 0.5%, respectively.

Fisker Unveils New Vehicles and Focuses on Sustainability

Fisker, a leading automotive company, recently showcased their latest lineup of vehicles, demonstrating their commitment to innovation and sustainability. CEO Henrik Fisker emphasized their brand values of innovation, sustainability, and design in a news release. The new vehicles unveiled include the Ronin, a sleek sports car, the Pear, a versatile crossover-size vehicle, and the Alaska, a compact pickup truck. Although smaller in size compared to the Ford Motor F-150 Lighting all-electric pickup truck, the Alaska promises to deliver exceptional performance.

Fisker has set ambitious goals for the future. By 2027, they aim to produce the world’s first climate-neutral vehicle, establishing themselves as leaders in software-defined transportation. This vision aligns with their customers’ changing perspectives on mobility.

The expansion of their product lineup has had a positive impact on Fisker’s stock performance. Investors are eager to discuss key factors such as production capacity, sales projections, and cash flow. These topics will be addressed during the upcoming earnings conference call scheduled for 9 a.m. Eastern time.

At the end of the previous quarter, Fisker had approximately $522 million in cash reserves. This figure excludes the $300 million obtained from the successful July convertible note offering and an additional $33 million in tax refunds.

According to Wall Street analysts, Fisker is expected to utilize roughly $100 million per quarter in the coming months. While the stock has experienced a decline of around 13% year to date and 39% over the past 12 months, factors such as higher interest rates and a slower-than-anticipated production ramp have impacted investor sentiment.

Overall, Fisker’s dedication to innovation, sustainability, and design sets them apart in the automotive industry. With their compelling product lineup and a clear focus on climate-neutral vehicles, Fisker aims to lead the way in shaping the future of transportation.