Rivian Automotive Inc. ($RIVN) Earnings (Q2 FY22)

Rivian Automotive Inc. ($RIVN) Earnings and Opinion:


Rivian is a company in the Consumer Cyclical sector and operates in the Auto Manufacturers industry. The company develops and sells electric vehicles and accessories. Rivian was founded in 2009 and is currently headquartered in San Jose, California. The company was first traded on the stock market in November of 2021.

Rivian Earnings Results:

  • Revenue of $364M missing expectations of $588M
  • Adjusted EBITDA of -$1.3B missing expectations of -$1.23B
  • Adjusted EPS of -$1.89 missing expectations of -$1.64
Opinion:
Rivian is currently trading a slight bit lower after reporting earnings after the market closed this afternoon. This is a shock to me, because I saw this earnings report as a bust and a pretty big lag for the EV maker. They ended up losing 1.7B dollars this quarter and only delivered 4,467 vehicles. I think one thing keeping them afloat and not seeing a total downfall was the guidance the company gave for the second half of the fiscal year. They are expected to generate 25,000 vehicle deliveries this fiscal year. I just continue to see a lot of flaws come about with this EV maker, it seems profitability is an apparent issue. However, there is still a lot of potential surrounding the future of this company. They have a chance to prove themselves in the EV market if their cars are reliable and sustainable. I get a lot of money has been poured into the EV market and especially this company with investments from Ford and Amazon. However, they haven't lived up anywhere close to the hype and time is running out with the competition ramping up from established automakers in this industry. For my opinion, I will gladly pass on the opportunity here. Even though it is probably one of the better opportunities to buy with the price being lower than IPO levels. If we look at the valuations though, we can see P/S ratio of 233.57 currently, and a net income margin of -3,911.3%. One thing to watch put for is the revenue growth that is forthcoming and when the company reaches profitability. Right now though, I would highly recommended investing your money in other places. 


*Information from Yahoo Finance, Consensus Gurus, CMLVIZ

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