Electrical automobile firm Rivian Automotive (NASDAQ:RIVN) might spotlight the upcoming R2 automobile when the corporate reviews third-quarter monetary outcomes Tuesday after market shut.
• RIVN is going through resistance from sellers. See the market dynamics right here.
Listed below are the earnings estimates, what analysts are saying and key gadgets to observe forward of the report.
Earnings Estimates: Analysts anticipate Rivian to report third-quarter income of $1.50 billion, up from $874 million in final yr’s third quarter, in response to knowledge from Benzinga Professional.
The corporate has overwhelmed analyst estimates for income in three straight quarters and in 9 of the previous 10 quarters general.
Analysts anticipate the corporate to report a lack of 72 cents per share, in comparison with a lack of 99 cents per share in final yr’s third quarter.
The corporate has overwhelmed analyst estimates for earnings per share in six of the previous 10 quarters.
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What Analysts Are Saying: Rivian’s third-quarter supply development was helped by sturdy demand from the expiration of the federal EV tax credit score, Goldman Sachs analyst Mark Delaney stated in a current observe.
“We observe that U.S. EV trade gross sales doubtless benefitted from pull-in demand associated to the top of the as much as $7,500 EV federal tax credit score below the IRA,” Delaney stated.
The remark got here after Rivian reported third-quarter deliveries of 13,200, up 32% year-over-year. The full beat a consensus estimate of 12,700 items, whereas lacking the Goldman Sachs estimate of 13,950.
“We anticipate the lack of the credit score to be a headwind for the market within the coming quarters.”
Delaney estimates the lack of the credit might result in a “double-digit % headwind” for the sector.
The analyst stated with the ending of the federal tax credit, new automobile launches might turn into much more essential and be the main tailwind for traders, citing the Tesla Mannequin YL, lower-cost fashions from Tesla and Rivian’s upcoming R2 launch.
Delaney maintained a Impartial score on Rivian with a $15 worth goal following the discharge of third-quarter deliveries.
“Rivian barely lowered its full-year supply steerage by 500 automobiles on the midpoint.”
The analyst stated the brand new steerage implies 42,500 automobile deliveries on the midpoint, which is in keeping with Goldman Sachs’ estimate of 42,500 and barely above consensus estimates of 42,400.
Delaney stated the important thing gadgets to observe for Rivian are elevated volumes, margins, vertical integration, money burn and the provision chain.
Listed below are different current analyst scores on Rivian Automotive and their worth targets:
- JPMorgan: Maintained Underweight score, raised worth goal from $9 to $10
- Mizuho: Downgraded from Impartial to Underperform, lowered worth goal from $14 to $10
- UBS: Maintained Impartial score, raised worth goal from $12 to $13
Key Gadgets to Watch: Latest quarters from Rivian have centered on the long run extra so than previous outcomes, with the corporate highlighting its three way partnership with Volkswagen Group and the upcoming R2 automobile.
The corporate stated after second-quarter outcomes that the R2 timeline was on observe with plans to fee the R2 line within the third quarter and shopper deliveries to start within the first half of 2026.
Traders and analysts shall be watching to see if this stays on observe and if Rivian has any new knowledge on reservations or preliminary demand of the R2, a mid-size SUV that would assist the corporate hit a bigger part of shoppers within the electrical automobile market.
Rivian narrowed its full-year supply forecast to a variety of 41,500 to 43,500 after third-quarter supply figures have been shared. Traders can even be watching to see if this vary stays in place or adjustments once more.
With the expiration of the federal tax credit score for EVs and Rivian CEO RJ Scaringe commenting in interviews that Chinese language EVs are cheaper and have extra enticing worth factors, traders and analysts might need to hear extra about what the corporate’s development plans are for the long run.
Rivian inventory will doubtless be much less reactive to leads to the upcoming quarters till the R2 is produced, and can see large swings if steerage or the timeline is modified.
RIVN Value Motion: Rivian inventory is down 2.43% to $13.24 at publication on Monday versus a 52-week buying and selling vary of $9.50 to $17.14. Rivian shares are down 0.45% year-to-date in 2025.
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Picture: Courtesy Rivian