Tuesday Ticker: Analysts predict Rivian results; Ford’s end to quarterly sales reports cause for concern

Toronto, Ontario ⁠— This week, Rivian prepares to unveil its Q1 2023 results; Ford of Canada’s decision to end quarterly sales reporting worries industry market analysts and AutoCanada reports net income increases with Q1 2023 financials.

Ready for Rivian results
Rivian is set to announce its Q1 earnings on Tuesday following market close, and analysts can’t seem to agree on what to expect.

Most are expecting losses, with a year-over-year decline in earnings on higher revenues. Zacks Consensus Estimate is expected Rivian to post a quarterly loss of US$1.451 per share.

A month ago, Rivian said its delivery targets for January through March were “in line with company expectations” and reaffirmed that it would meet its annual targets for 2023. The EV maker produced 9,395 vehicles in Q1 2023 and delivered 7,946 vehicles in the same period.

As of 11 a.m EST Monday, shares of Rivian were down 23 percent year-to-date, trading at US$13.33 per share after hitting an all-time low of US$12 per share on April 25.

Rivian stock has fallen nearly 90 percent since its IPO.

Ford fog
Ford of Canada no longer reports sales figures by quarter, and the OEM asserts it no longer reports sales by “regional market”—yet it reported regional U.S. sales numbers for Q1 2023.

According to Automotive News Canada, the OEM made the announcement by quietly writing on its website that it will “report global results with a focus on three new business segments rather than by geographic reasons.”

Regardless, Ford reported its Q1 U.S. sales numbers in a press release on April 4.

Some industry experts are worried other OEMs may do the same, similar to the mass switch from monthly to quarterly reports in 2019.

“We’re certainly continuing to report sales, just not through a press release,” said Matt Drennan-Scace, communications manager for Ford Canada. “The only change is that, through a press release perspective, we’re reporting results on an annual basis, not a quarterly basis.”

When Automotive News Canada asked if the OEM would provide quarterly sales numbers to media, Ford said they “could ask, but we won’t provide those [figures] to any media.”

AutoCanada’s Q1 aggregate
AutoCanada reported its Q1 2023 financial results last Wednesday, reporting a 95 percent increase in net income compared to the same quarter last year.

Net income for January through March 2023 was reported at $8.4 million, compared to $4.3 million in Q1 2022. Diluted earnings per share were $0.32, a $0.22 increase from $0.10 in the first quarter of last year.

Revenue was $1,539.3 million, compared to $1,342.4 million in Q1 2022, an increase of 14.7 percent.

Adjusted EBITDA for the period was $45 million, compared to $62.2 million in Q1 2022. This decrease was largely driven by the current economic uncertainty resulting in compressed new and used vehicle gross profit, limited new vehicle inventory availability, and the increase of $12.4 million in floorplan financing costs as a result of higher interest rates, said AutoCanada.

Parts, service and collision repair gross profit was $93.9 million, an increase of $15.4 million or 19.7 percent. Total gross profits increased by 3.1 percent to $255 million.

“We are pleased with the steady growth achieved in our first quarter 2023 operating results as compared to the same period last year,” said Paul Antony, executive chairman of AutoCanada. “In addition, our acquisitions have made strong contributions to our performance, and have surpassed our expectations.”



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