Tesla (TSLA) Q2 Results Likely to be In-Line, Thinks Analyst
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Price: $170.18 +4.97%
Rating Summary:
23 Buy, 27 Hold, 13 Sell
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Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
23 Buy, 27 Hold, 13 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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Wedbush maintained a Neutral rating on Tesla Motors (NASDAQ: TSLA) with a price target of $110.00. Tesla reports Q2 results on August 7th, and analyst Craig Irwin expects an in-line quarter. In his view, margins will be key.
"We expect Tesla to report essentially in-line 2Q13 results. We are looking for 2Q13 rev/EPS of $385m/($0.21) vs. consensus $396m/($0.16) . . . We model 2Q13 delivery of 4,700 Model S vehicles, with gross margins of 18.0% improving 90bps Q/Q on further gains in factory efficiency and reduced vehicle rework prior to or following delivery, offset by a moderate headwind from underabsorption of overhead for the inventory build and a less favorable options mix," said Irwin.
"We see incremental visibility for Tesla achieving 4Q13 gross margin targets of 25% excluding credits as the most important item on the call, where experience with the Roadster supports good confidence. Over the production of the Roadster, there was a $45k per vehicle improvement (excluding credits) in production costs, mostly on assembly efficiency. This affords Tesla an execution roadmap for the Model S, where the company now has greater control," he added.
For an analyst ratings summary and ratings history on Tesla Motors (NASDAQ: TSLA) click here. For more ratings news on Tesla Motors click here.
Shares of Tesla Motors closed at $129.39 yesterday.
"We expect Tesla to report essentially in-line 2Q13 results. We are looking for 2Q13 rev/EPS of $385m/($0.21) vs. consensus $396m/($0.16) . . . We model 2Q13 delivery of 4,700 Model S vehicles, with gross margins of 18.0% improving 90bps Q/Q on further gains in factory efficiency and reduced vehicle rework prior to or following delivery, offset by a moderate headwind from underabsorption of overhead for the inventory build and a less favorable options mix," said Irwin.
"We see incremental visibility for Tesla achieving 4Q13 gross margin targets of 25% excluding credits as the most important item on the call, where experience with the Roadster supports good confidence. Over the production of the Roadster, there was a $45k per vehicle improvement (excluding credits) in production costs, mostly on assembly efficiency. This affords Tesla an execution roadmap for the Model S, where the company now has greater control," he added.
For an analyst ratings summary and ratings history on Tesla Motors (NASDAQ: TSLA) click here. For more ratings news on Tesla Motors click here.
Shares of Tesla Motors closed at $129.39 yesterday.
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