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Tesla Posts Strong Revenues Despite Q4 Loss, Global Net Orders Up 49%

Madeleine Johnson

Tesla Inc. TSLA just released its fourth quarter fiscal 2016 earnings results, posting earnings, before non-recurring items, of a loss of $1.25 per share and revenues of $2.28 billion. Currently, TSLA is a #4 (Sell) on the Zacks Rank, and is up 2.12% to $273.51 per share in trading shortly after its earnings report was released.

Missed earnings estimates. The company reported earnings of a loss $1.25 per share, beating the Zacks Consensus estimate of a loss of $1.19 per share. This number excludes 47 cents from non-recurring items.

Beats revenue estimates. The company saw revenues of $2.28 billion, topping our consensus estimate of $2.201 billion and gaining 88.4% year-over-year. Fiscal 2016 revenue came in at $7 billion, up 73% from fiscal 2015.

In Q4, Tesla received 49% more global net orders for Model S and Model X combined, compared to the same period in 2015. The company’s Model 3 is on track for initial production to begin this July, and volume production by September.

Third-quarter to fourth-quarter cash grew by over $300 million to $3.4 billion.

Looking ahead, Tesla expects to deliver 47,000 to 50,000 Model S and Model X vehicles combined in the first half of 2017, representing vehicle delivery growth of 61% to 71% compared to the yea-ago period.

Tesla is on track to generate $500 million in cash (including growth of non-recourse project financing) by 2019, and achieve the cost synergies they committed to upon acquiring SolarCity.

Here’s a graph that looks at Tesla’s price, consensus, and EPS surprise:

Tesla Motors, Inc. Price, Consensus and EPS Surprise

Tesla Motors, Inc. Price, Consensus and EPS Surprise | Tesla Motors, Inc. Quote

Tesla Inc. designs, develops, manufactures, and sells electric vehicles and stationary energy storage products. It operates primarily in the United States, China, Norway and internationally. Tesla Inc., formerly known as Tesla Motors Inc., is headquartered in Palo Alto, California.

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