Tesla (TSLA) to Report Q2 Earnings: What's in the Offing?
Tesla TSLA is set to post its second-quarter 2023 results on Jul 19 after closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at 83 cents per share and $24.88 billion, respectively.
Tesla surpassed the Zacks Consensus Estimate for earnings in the last reported quarter on higher-than-expected revenues from the Energy Generation/Storage and Services/Other segments. Over the trailing four quarters, Tesla beat the Zacks Consensus Estimate on all occasions, the average being 11.71%. This is depicted in the graph below:
Tesla, Inc. Price and EPS Surprise
Tesla, Inc. price-eps-surprise | Tesla, Inc. Quote
Will the company be able to maintain its winning streak this time around as well?
Estimate Revisions
The Zacks Consensus Estimate for second-quarter earnings per share has remained unchanged in the past seven days. The estimate for the bottom line implies a year-over-year rise of 9.21%. The Zacks Consensus Estimate for quarterly revenues suggests year-over-year growth of 46.95%.
Factors at Play
The company delivered 466,140 cars worldwide in the second quarter, up 83% from the year-ago quarter and 10% from the prior quarter. Total deliveries also surpassed the Zacks Consensus Estimate of 444,569 units amid multiple price changes. Our estimate for the same was 434,736 units.
Tesla delivered 446,915 Model 3/Y units in the to-be-reported quarter, topping the Zacks Consensus Estimate of 419,987 units. Our estimate for the same was 420,156 units. Stronger-than-expected deliveries for Model 3/Y are expected to play in favor of Tesla’s upcoming results.
Starting this year, Tesla offered steep discounts on its models in the United States, China and elsewhere to spur demand, which is also likely to have elevated automotive revenues to some extent. The automaker is riding on the robust demand for Models 3 and Y, which form a major chunk of its total deliveries.
The Zacks Consensus Estimate and our forecast for Tesla’s Energy Generation and Storage revenues are pegged at $1,690.90 million and $1573.70 million, respectively, suggesting a rise from $866 million recorded in the same quarter of 2022.
The Zacks Consensus Estimate and our estimate for revenues for Tesla’s Services and Other segment are pegged at $1,742 million and $1,954.30 million, respectively, implying growth from $1,466 million recorded in the same quarter of 2022.
What Does Our Model Say?
Our proven model predicts an earnings beat for Tesla 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. That is the case here, as you will see below.
Earnings ESP: Tesla has an Earnings ESP of +2.41%. This is because the Most Accurate Estimate is pegged 2 cents higher than 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: Tesla currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks With the Favorable Combination
Here are a few other players from the auto space that, according to our model, have the right combination of elements to post an earnings beat for the quarter to be reported:
Genuine Parts Company GPC will release second-quarter 2023 results on Jul 20. The company has an Earnings ESP of +0.79% and a Zacks Rank #2.
The Zacks Consensus Estimate for Genuine Parts’ to-be-reported quarter’s earnings and revenues is pegged at $2.31 per share and $5.95 billion, respectively. GPC surpassed earnings estimates in all of the trailing four quarters, the average surprise being 8.15%.
Autoliv, Inc. ALV will release second-quarter 2023 results on Jul 21. The company has an Earnings ESP of +0.23% and a Zacks Rank #3.
The Zacks Consensus Estimate for Autoliv’s to-be-reported quarter’s earnings and revenues is pegged at $1.44 per share and $2.49 billion, respectively. ALV surpassed earnings estimates in three of the trailing four quarters and missed once, the average surprise being 26.93%.
General Motors Company GM will release second-quarter 2023 results on Jul 25. The company has an Earnings ESP of +9.37% and a Zacks Rank #3.
The Zacks Consensus Estimate for General Motors’ to-be-reported quarter’s earnings and revenues is pegged at $1.66 per share and $42.46 billion, respectively. GM surpassed earnings estimates in three of the trailing four quarters and missed once, the average surprise being 15.50%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Genuine Parts Company (GPC) : Free Stock Analysis Report
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Tesla, Inc. (TSLA) : Free Stock Analysis Report
