By Michael Elkins
Shares of Lordstown Motors (NASDAQ:RIDE) are up over 20% in early trading Thursday after the company reported 2Q results and offered forward-looking commentary during the earnings call.
The electric vehicle company reported Q2 EPS of $0.32, compared to a loss per share of $(0.61) in the same period last year, while analysts were expecting EPS of $(0.44). RIDE reported an ending cash balance of $236 million. This was above expectations, extending the company’s “runway,” due in part to “disciplined expense controls and rigorous program management," the company said.
RIDE reported an operating profit of $61.3 million, inclusive of a $101.7 million gain on sale plus a $18.4 million reimbursement of certain operating expenses related to the company’s Ohio plant sale to Foxconn. Core operating expenses, excluding the impact of the APA, were $58.8 million or 33% lower than 1Q22, and down 47% versus 2Q21.
Lordstown reaffirmed its 3Q target for start of commercial production of the Endurance and commercial deliveries expected in Q4. The company expects lower 2H 2022 total operating loss and capital expenditures of between $140 million and $150 million, excluding contingent liabilities, reducing the minimum capital raise in 2022 from $150 million to $50 million to $75 million.
The company’s newly minted CEO, Edward Hightower, offered his own commentary on the quarter.
"I am excited by my expanded role as CEO of Lordstown and the joint venture with Foxconn. In Q2, we made significant progress towards our plan to launch the Endurance in Q3 of 2022 and begin sales in Q4. We look forward to getting the Endurance into customers' hands, as we think they are going to love it," said Hightower. "We have also started pre-development work on the first vehicle under our joint venture. Our team is excited to create and launch future products while leveraging the Foxconn EV ecosystem."