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Why Is Tesla (TSLA) Up 26.1% Since Last Earnings Report?
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A month has gone by since the last earnings report for Tesla (TSLA - Free Report) . Shares have added about 26.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Tesla due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Tesla Delivers Yet Another Stellar Show in Q4
Tesla reported fourth-quarter 2022 earnings of $1.19 a share, up from the year-ago figure of 85 cents and surpassing the Zacks Consensus Estimate of $1.09. This marked an earnings beat for the electric vehicle (EV) behemoth for the eighth time in a row. Higher-than-expected revenues from Energy Generation/Storage and Services/Other segments resulted in this outperformance. Our estimate for the bottom line was 83 cents a share.
Total revenues came in at $24,318 million, witnessing year-over-year growth of 37.2%. The top line also crossed the consensus mark of $23,729 million. Our estimate for the revenues was $22,404 million. Tesla reported an overall gross margin of 23.8% for the reported quarter. The operating margin came in at 16%.
Management sticks to its target of around 50% growth in deliveries in the foreseeable future. For 2023, it expects deliveries to reach 1.8 million units.
Key Takeaways
Tesla’s production and delivery totaled 439,701 and 405,278 vehicles, reflecting a year-over-year jump of 44% and 31%, respectively. The Model 3/Y registered production and deliveries of 419,088 and 388,131 vehicles, marking year-over-year growth of 43% and 31%, respectively. Production and delivery of the Model S/X totaled 20,613 and 17,147 units, respectively, in the quarter under review.
Total automotive revenues of $21,307 million missed the consensus mark of $21,325 million but jumped 33% year over year. The figure also included $467 million from the sale of regulatory credits for electric vehicles, which rose 49% year over year. Automotive gross profit came in at $5,522 million, which missed the consensus mark of $5,837 million. Automotive gross margin came in at 25.9%, contracting 466 basis points from fourth-quarter 2021.
Energy Generation and Storage revenues came in at $1,310 million in fourth-quarter 2022 compared with the year-ago quarter’s figure of $688 million. The figure beat the consensus mark of $911 million. Services and Other revenues were $1,701 million, significantly increasing from $1,064 million a year ago. The figure also topped the consensus mark of $1,490 million.
Operating expenses totaled $1,876 million in the reported quarter, down from $2,234 million incurred in the corresponding period of 2021.
Financials
Tesla had cash and cash equivalents of $22,185 million as of Dec 31, 2022, compared with $17,707 million on Dec 31, 2021. Net cash provided by operating activities amounted to $3,278 million in fourth-quarter 2022, declining 28.5% year over year. Its capital expenditure totaled $1,858 million, compared with $1,810 million recorded in fourth-quarter 2021.
Tesla generated a free cash flow of $1,420 million during the reported quarter, falling 48.8% year over year. Long-term debt and finance leases, net of current portion, totaled $1,597 million, down from $5,245 million on Dec 31, 2021.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -19.52% due to these changes.
VGM Scores
At this time, Tesla has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Tesla has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Tesla (TSLA) Up 26.1% Since Last Earnings Report?
A month has gone by since the last earnings report for Tesla (TSLA - Free Report) . Shares have added about 26.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Tesla due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Tesla Delivers Yet Another Stellar Show in Q4
Tesla reported fourth-quarter 2022 earnings of $1.19 a share, up from the year-ago figure of 85 cents and surpassing the Zacks Consensus Estimate of $1.09. This marked an earnings beat for the electric vehicle (EV) behemoth for the eighth time in a row. Higher-than-expected revenues from Energy Generation/Storage and Services/Other segments resulted in this outperformance. Our estimate for the bottom line was 83 cents a share.
Total revenues came in at $24,318 million, witnessing year-over-year growth of 37.2%. The top line also crossed the consensus mark of $23,729 million. Our estimate for the revenues was $22,404 million. Tesla reported an overall gross margin of 23.8% for the reported quarter. The operating margin came in at 16%.
Management sticks to its target of around 50% growth in deliveries in the foreseeable future. For 2023, it expects deliveries to reach 1.8 million units.
Key Takeaways
Tesla’s production and delivery totaled 439,701 and 405,278 vehicles, reflecting a year-over-year jump of 44% and 31%, respectively. The Model 3/Y registered production and deliveries of 419,088 and 388,131 vehicles, marking year-over-year growth of 43% and 31%, respectively. Production and delivery of the Model S/X totaled 20,613 and 17,147 units, respectively, in the quarter under review.
Total automotive revenues of $21,307 million missed the consensus mark of $21,325 million but jumped 33% year over year. The figure also included $467 million from the sale of regulatory credits for electric vehicles, which rose 49% year over year. Automotive gross profit came in at $5,522 million, which missed the consensus mark of $5,837 million. Automotive gross margin came in at 25.9%, contracting 466 basis points from fourth-quarter 2021.
Energy Generation and Storage revenues came in at $1,310 million in fourth-quarter 2022 compared with the year-ago quarter’s figure of $688 million. The figure beat the consensus mark of $911 million. Services and Other revenues were $1,701 million, significantly increasing from $1,064 million a year ago. The figure also topped the consensus mark of $1,490 million.
Operating expenses totaled $1,876 million in the reported quarter, down from $2,234 million incurred in the corresponding period of 2021.
Financials
Tesla had cash and cash equivalents of $22,185 million as of Dec 31, 2022, compared with $17,707 million on Dec 31, 2021. Net cash provided by operating activities amounted to $3,278 million in fourth-quarter 2022, declining 28.5% year over year. Its capital expenditure totaled $1,858 million, compared with $1,810 million recorded in fourth-quarter 2021.
Tesla generated a free cash flow of $1,420 million during the reported quarter, falling 48.8% year over year. Long-term debt and finance leases, net of current portion, totaled $1,597 million, down from $5,245 million on Dec 31, 2021.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -19.52% due to these changes.
VGM Scores
At this time, Tesla has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Tesla has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.