Workhorse Group (WKHS), the truck and drone manufacturer, reported a quarterly loss of $1.40 per share for the period ending June 2024. This result aligns with the Zacks Consensus Estimate but represents a decline from the loss of $2.40 per share reported a year ago. These figures are adjusted for non-recurring items. The company also missed revenue estimates, reporting $0.84 million in revenue, significantly below the Zacks Consensus Estimate of $2.92 million and a considerable drop from the $3.97 million reported in the same period last year.
While Workhorse has struggled to meet earnings expectations in recent quarters, the company’s future performance hinges on its ability to improve its earnings outlook and navigate the challenges of the automotive industry. One crucial factor for investors to consider is the company’s Zacks Rank. Based on recent earnings estimate revisions, Workhorse currently holds a Zacks Rank #3 (Hold), indicating an expectation of performance in line with the broader market. However, the company’s stock has experienced a significant decline, losing approximately 83.1% of its value since the beginning of the year, while the S&P 500 has gained 17.6% during the same period.
The Automotive – Original Equipment industry, to which Workhorse belongs, currently ranks within the bottom 30% of the 250+ Zacks industries. This ranking reflects the challenges faced by the industry, which could have a material impact on Workhorse’s performance.
In contrast to Workhorse’s performance, REE Automotive Ltd. (REE), another company in the same industry, is expected to report a quarterly loss of $1.45 per share in its upcoming earnings release, representing a year-over-year increase of +31%. However, REE’s projected revenue of $0.6 million reflects a decline of 36.2% from the year-ago quarter.
As Workhorse navigates these challenges, investors will continue to monitor the company’s earnings outlook, industry trends, and the overall macroeconomic environment to determine its future prospects.
