<img src=”https://storage.googleapis.com/prod-zenger-upload/image/20230714/feat_bf76197c-ca5f-4081-b04b-0754682be02c.jpg” alt=”With less than a week remaining until Tesla, Inc.’s (NASDAQ:TSLA) second-quarter earnings report, an analyst has provided his estimates for the company. XIAOLU CHU/GETTY IMAGES “>
With less than a week remaining until Tesla, Inc.’s (NASDAQ:TSLA) second-quarter earnings report, an analyst has provided his estimates for the company.
Gary Black, co-founder and managing partner of Future Fund, predicts that Tesla’s adjusted earnings per share for the second quarter will be around $0.87. This figure is higher than the previous quarter’s $0.85 and the year-ago quarter’s $0.76. The consensus estimate stands at $0.82 per share.
Black’s estimates are based on the following assumptions:
According to Black, management commentary on several key aspects will be more important than the adjusted earnings per share.
These include the fiscal year 2023 deliveries guidance, the trajectory of the auto gross margin (excluding credits), the timing of the first Cybertruck deliveries, and the recognition of deferred revenue from full-self driving.
The Wall Street estimate predicts Tesla’s revenue to be $24.57 billion, marking a 45.10% increase from the $16.93 billion reported a year ago and a 5.3% increase from the previous quarter’s $23.33 billion.
Investor concern revolves around the impact on margins due to significant discounts offered by Tesla on its new inventory vehicles across different regions. However, vehicle prices stabilized in the second quarter after substantial reductions announced earlier in the year.
Tesla is scheduled to release its earnings report on July 19 after the market close, followed by an earnings call where CEO Elon Musk and the management team will provide commentary and answer questions from sharehZenger News and analysts.
Tesla closed Thursday’s session up 2.17% at $277.90, according to Zenger News Pro data.
Produced in association with Benzinga
Edited by Saba Fatima and Maham Javaid