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Workhorse (WKHS) Gears up for Q2 Earnings: What's in Store?

Workhorse Group, Inc.’s WKHS second-quarter 2021 results are slated to be out on Aug 9, before the bell. The Zacks Consensus Estimate for the quarter’s loss and revenues is pegged at 19 cents per share and $5.19 million, respectively. The electric vehicle (EV) maker posted a wider-than-expected loss in the last reported quarter.

The company missed earnings estimates in two of the preceding four quarters, was at par in one and beat in the remaining one, the average negative surprise being 187%.

Workhorse Group, Inc. Price and EPS Surprise

Workhorse Group, Inc. Price and EPS Surprise
Workhorse Group, Inc. Price and EPS Surprise

Workhorse Group, Inc. price-eps-surprise | Workhorse Group, Inc. Quote

Which Way are the Estimates Headed?

The Zacks Consensus Estimate for Workhorse’s second-quarter loss per share has narrowed by two cents over the past 90 days. The year-ago loss was 12 cents per share. Sales of $90,000 were recorded in the corresponding quarter of 2020, indicating a whopping rise of 5,670%.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Workhorse this time around. The combination of a positive Earnings ESP, and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat. This has been elaborated below.

Earnings ESP: The company has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Workhorse, peers of which include ElectraMeccanica Vehicles Corp. SOLO and Nikola NKLA, carries a Zacks Rank of 4 (Sell), currently.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors at Play

Workhorse has not been able to generate any solid revenues in the last few years. To make matters worse, this February, the company lost the U.S. Postal Service’s (USPS) giant contract for the next mail truck to rival Oshkosh OSK. This was followed by Workhorse filing a federal lawsuit against the USPS’ decision to award the contract to Oshkosh. Workhorse calls the USPS' decision "arbitrary, capricious, and without rational basis". Also, Workhorse claims that the Postal Service unfairly blamed its truck for a mishap that injured a worker evaluating the prototype. These events are expected to have negatively impacted the EV maker’s second-quarter sales and earnings.

Further, high cost of goods sold due to elevated tooling costs for the C-Series production might have hurt gross profits. Elevated SG&A and R&D costs are also anticipated to have eroded the company’s operating margins. Soaring commodity costs and supply-chain distortions amid the global chip shortage are expected to have further dented margins during the quarter under review.


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Oshkosh Corporation (OSK) : Free Stock Analysis Report

Workhorse Group, Inc. (WKHS) : Free Stock Analysis Report

ElectraMeccanica Vehicles Corp. (SOLO) : Free Stock Analysis Report

Nikola Corporation (NKLA) : Free Stock Analysis Report

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Zacks Investment Research