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Jul 03, 2023

Nikola earnings look

Richard Drury Electric truck maker Nikola (NASDAQ:NKLA) is set to report its second-quarter earnings on Friday, with investors closely watching its balance sheet and any plans for future capital

Richard Drury

Electric truck maker Nikola (NASDAQ:NKLA) is set to report its second-quarter earnings on Friday, with investors closely watching its balance sheet and any plans for future capital raises, as EV makers grapple with high costs.

Wall Street analysts expect Nikola to post earnings per share of -$0.22 on revenues of $14.86 million, which would mark a drop of 18% year-over-year.

Nikola shares have surged over the past few months, up nearly 56% YTD. The company has had a busy quarter as it announced headcount reductions, liquidated Romeo Power, and made several hydrogen related announcements.

The company announced in June that it would cut about 270 jobs in a bid to cut costs. It disclosed in July that it would liquidate the assets of EV battery maker Romeo Power. It had acquired Romeo Power less than a year ago in August 2022.

The automaker reported a jump in its Q2 deliveries with wholesale deliveries of 45 trucks in Q2 vs. 31 units in Q1, and retail deliveries of 66 trucks in Q2 vs. 33 units in Q1.

Investors will be looking out for the company's plans to raise further capital and reduce its cash burn. The company had adjourned its annual stockholder meeting in July after it failed to secure enough votes to approve a proposal to issue more shares and raise capital.

Seeking Alpha analyst Individual Trader said, "Nikola's profitability trends are improving, but the company still needs to reduce its cash-flow burn significantly and achieve positive EBITDA by 2025."

Nikola has seen numerous changes to its estimates in the past three months. Earnings per share forecasts have been revised downwards and upwards 2 times each, while revenue estimates have been revised downwards 3 times vs. 0 upwards revisions.

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