Shares of Lucid Group Inc LCID tanked in premarket buying and selling on Wednesday, after the corporate reported disappointing third-quarter (Q3) results.
The outcomes got here amid an exciting earnings season. Listed here are some key analyst takeaways from the earnings launch.
- Cantor Fitzgerald analyst Andres Sheppard downgraded the score from Chubby to Impartial, whereas slashing the worth goal from $10 to $6.
- RBC Capital Markets analyst Tom Narayan reiterated a Sector Carry out score and worth goal of $6.
- Guggenheim Securities analyst Ronald Jewsikow maintained a Impartial score on the inventory.
Cantor Fitzgerald: Lucid Group not solely reported a income miss for the third quarter, but additionally lowered its full-year manufacturing steering from greater than 10,000 to eight,000-8,500, Sheppard stated within the downgrade be aware. “Recall that the corporate had beforehand revised its steering on 5/8 to >10,000 automobiles (from the prior 10,000-14,000),” he wrote.
The analyst added that the score downgrade mirrored “decrease anticipated revenues, persistent giant unfavourable gross margins, revision of the corporate’s annual manufacturing steering, and trade demand slowdown.”
RBC Capital Markets: The corporate’s decreased manufacturing steering of 8,000-8,500 “was anticipated given solely 6k produced by the primary 9 months,” Narayan stated. “Gross margin improved on decrease income q/q pushed by value management applications together with higher stock administration, he added.
“We aren’t seeing the upward momentum in demand crucial to succeed in consensus numbers,” the analyst additional wrote.
Guggenheim Securities: Lucid Group’s third-quarter outcomes “highlighted the continuing challenges driving adoption for his or her flagship luxurious electrical sedan, the ASP impression of discounting and promotional exercise, and a tempered manufacturing outlook reflective of macro-fueled product adoption challenges,” Jewsikow stated.
“Total, it stays difficult to be constructive on LCID near-term with no new merchandise that may materially alter the expansion/margin trajectory of the enterprise till late 2024/early 2025,” he added.
LCID Value Motion: Shares of Lucid Group misplaced 5.81% to succeed in $4.04 in premarket buying and selling on Wednesday.