@niche: Workhorse Q3 Earnings Miss Estimates, Revenues Decline Y/Y003637

Workhorse Group Inc. WKHS reported an adjusted loss of 88 cents per share for the third quarter of 2024, wider than the Zacks Consensus Estimate of a loss of 85 cents. The company had incurred an adjusted loss of $2.80 in the year-ago quarter.

Workhorse generated net revenues of $2.51 million, which missed the Zacks Consensus Estimate of $6 million. Revenues fell 17.2% year over year due to the non-recurrence of a $2.3 million sales allowance obtained in the corresponding quarter of 2023.

The cost of sales rose to $6.64 million from $26.56 million reported in the corresponding quarter of 2023 due to lower inventory reserves.

Selling, general and administrative expenses fell to $7.72 million from $11.76 million reported in the corresponding quarter of 2023 as a result of a decline in employee compensation and associated expenses.

Research and development expenses fell to $2.31 million from $5.77 million reported in the year-ago quarter, thanks to a decline in employee compensation and associated expenses.

The truck manufacturer’s net loss in the third quarter of 2024 narrowed to $25.14 million from $30.65 million reported in the year-ago quarter.

As of Sept. 30, 2024, Workhorse had $3.24 million in cash and cash equivalents, down from $25.85 million as of Dec. 31, 2023.

Workhorse has secured a General Services Administration (GSA) Government Fleet Contract. This contact enables federal agencies to streamline the purchase of Workhorse’s American-made W56 commercial electric vehicles (EVs) in the W56 platform. 

The GSA contract, GS-30F-RA00, listed under SIN 493E, makes company vehicles readily available for agencies with GSAFleet.gov access. The contract highlights Workhorse’s robust production and quality standards at its Union City, Indiana facility and complements its growing cooperative purchasing network, including Sourcewell, Florida Sheriff’s Association Purchasing Program, OMNIA Partners and PASSPort. 

Workhorse is expanding access to its commercial EVs through various purchasing platforms, helping public sector fleets adopt dependable solutions for achieving zero-emission targets and easing the shift to sustainable transportation.

WKHS currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the auto space are Dorman Products, Inc. DORM, Tesla, Inc. TSLA and BYD Company Limited BYDDY, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for DORM’s 2024 sales and earnings suggests year-over-year growth of 3.66% and 51.98%, respectively. EPS estimates for 2024 and 2025 have improved 75 cents and 88 cents, respectively, in the past 30 days. 

The Zacks Consensus Estimate for TSLA’s 2024 sales suggests year-over-year growth of 2.97%. EPS estimates for 2024 and 2025 have improved by 22 cents and 18 cents, respectively, in the past 30 days. 

The Zacks Consensus Estimate for BYDDY’s 2024 sales and earnings suggests year-over-year growth of 25.07% and 31.51%, respectively. EPS estimates for 2024 and 2025 have improved by 35 cents and 39 cents, respectively, in the past 30 days.

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