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Valued at a market cap of $834.4 billion, Tesla, Inc. (TSLA) designs, manufactures, leases, and sells electric vehicles, as well as energy generation and storage systems. The mega-cap stock is the market leader in electric car sales in the United States. The Austin, Texas-based company is expected to announce its fiscal Q3 earnings results on Wednesday, Oct. 16.
Ahead of this event, analysts project the automotive company to report a profit of $0.46 per share, a decline of 13.2% from $0.53 per share in the year-ago quarter. Moreover, the company has met Wall Street's bottom-line estimates in one of the last four quarters while missing on three other occasions. In Q2, the company reported an EPS of $0.42, which lagged behind the consensus estimates by 8.7%.
For fiscal 2024, analysts expect TSLA to report an EPS of $1.75, down 32.7% from $2.60 in fiscal 2023. However, EPS is expected to rebound and grow 44% year-over-year to $2.52 in fiscal 2025.
Shares of Tesla have increased 3.9% over the past 52 weeks, significantly underperforming both the S&P 500 Index's ($SPX) 33.5% rise and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 23.8% return over the same period.
Shares of TSLA tumbled 12.3% following its mixed Q2 earnings release on Jul. 23. The company’s revenue of $25.5 billion in the period surpassed Wall Street estimates, while its earnings of $0.52 per share lagged behind the estimates. The underperformance was primarily driven by a 7% decline in Tesla’s automotive revenue, fueled by increasing competition in the industry. Its weaker-than-expected profit margins, due to a 39% surge in the company’s operating expenses and prevalent pricing pressure in the industry, further dampened investor confidence.
Analysts' consensus view on Tesla’s stock is cautious, with a "Hold" rating overall. Among 36 analysts covering the stock, 10 recommend a "Strong Buy," one suggests a "Moderate Buy," 18 advocate "Hold," and seven recommend a “Strong Sell” rating. This configuration is slightly more bullish than three months ago, with nine analysts suggesting a "Strong Buy." As of writing, the stock is trading premium to its mean price target of $201.89.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
