By Davit Kirakosyan and Senad Karaahmetovic
Rivian Automotive Inc (NASDAQ:RIVN) shares are down about 7.5% following the company’s reported Q4 results, with revenues coming in at $663 million, significantly worse than the consensus estimate of $729M as it delivered only 8,054 vehicles from 10,020 produced.
Adjusted EPS came in at ($1.73), better than the consensus estimate of ($1.96).
According to the company, the supply chain continues to be the main limiting factor of production and it expects these challenges to persist into 2023 but with better predictability relative to what was experienced in 2022.
The company’s production forecast for fiscal 2023 came in lower than analysts' estimates. For the full 2023-year, Rivian expects 50,000 produced vehicles and an adjusted EBITDA of ($4.3B).
Goldman Sachs analysts said the electric vehicle (EV) maker delivered mixed results.
"While we continue to expect the company to have improved traction long-term, we would look for more visibility on an improved production ramp and timeline to profitability to be more positive on the stock and maintain our Neutral rating," they said in a client note.
Truist analysts cut the price target by $6 to $44 per share but remain positive on the RIVN stock.
"While shares are likely to face pressure tomorrow, we note the lower '23 guide is largely a result of RIVN's cost-saving initiatives as the company reiterated its tgt for FY24 GM positive. Overall, we see the sacrifice of NT production for enhanced R1 & RCV profitability as an attractive value proposition," they said in yesterday's note.