By Stock in electric vehicle start-up Fisker (FSR) took a hit after the company announced its third-quarter financial results, which fell short of expectations. Despite shipping its first electric vehicle, called the Ocean, Fisker reported a per-share loss of 27 cents from sales of approximately $72 million. Analysts were anticipating a per-share loss of 23 cents from sales of about $143 million.
Q3 Vehicle Deliveries and Production Numbers
During the quarter, Fisker delivered 1,097 vehicles and produced 4,725 units. The company revealed that an additional 1,200 vehicles were delivered in October, bringing the total to over 2,300 units in just two months. However, these figures still fell below the company’s initial forecast.
Adjusted Full-Year Production Guidance
Fisker has revised its full-year production guidance, lowering it to a range of 13,000 to 17,000 units. Initially, the company had projected building approximately 20,000 to 23,000 units this year. The adjustment was made to optimize the global delivery and logistics platform and avoid excessive inventory.
Financial Outlook
In terms of financial outlook, Fisker management expects research and development, selling, general and administration expenses, and capital spending to range between $565 million and $640 million for full-year 2023. This projection remains unchanged from previous guidance provided in August.
Overall, while Fisker’s third-quarter results were disappointing, the company is focused on streamlining operations and maintaining a strong financial position as it looks ahead to continued growth in the electric vehicle market.
Fisker Reports Quarterly Finances: 5 Million in Cash and Investments
Fisker stock down over 13% in premarket trading
Fisker, the electric vehicle (EV) start-up, reported a strong cash position of approximately $625 million at the end of the quarter, along with various investments. According to FactSet, Wall Street analysts anticipate that the company will utilize around $75 million per quarter for the next few quarters.
In premarket trading on Tuesday, Fisker stock experienced a decline of more than 13%, reaching $3.56 per share. However, in regular trading on Monday, the stock gained 6.6%, closing at $4.11 per share. It is worth noting that this figure falls just 26 cents short of the closing price on November 7.
This particular earnings report by Fisker deviates from the norm, as it was initially scheduled for November 8 but was postponed due to the appointment of a new chief accounting officer. Following this delay announcement, Fisker stock dropped from $4.37 to $3.99 per share.
Comparatively, over the past 12 months, Fisker stock has experienced a significant decline of 52%, while the S&P 500 and Nasdaq Composite have seen increases of approximately 11% and 23%, respectively. The reduced investor enthusiasm can be attributed to higher interest rates and lower EV prices, primarily caused by price cuts from Tesla (TSLA).
Looking ahead to the upcoming earnings, options markets suggest a potential 15% movement in the stock, either up or down. Historically, Fisker stock has averaged about a 12% movement following each of the past four quarterly reports, with gains recorded once and losses registered three times during that period.
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