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It’s earnings season again, and all eyes are on Tesla (NASDAQ:TSLA). The electric vehicle (EV) leader is scheduled to report first-quarter 2022 earnings on April 19. After a difficult month, TSLA stock could certainly use a positive catalyst.
While the company ended March on a high note, shares have come down significantly since then and remain just slightly in the green for the month. Tesla has an opportunity to turn its volatile trajectory around, but only if its earnings report reveals actual progress. That means coming out ahead of Wall Street estimates regarding the metrics that matter. Tesla’s earnings could also easily set the tone for the entire EV sector.
Let’s take a look at what analysts are predicting and what investors should be watching for as Tesla gears up for the next quarter.
The Tesla Earnings: What to Expect
TSLA stock is down today as the company prepares for the all-t00-important earnings call tomorrow. As of this writing, it is down 0.75% for the day and isn’t showing signs of a rebound. These declines can be attributed more to general negative market momentum than to anything related to Tesla’s earnings. However, shares may reverse course later today as momentum builds for the earnings report.
What specifically are analysts predicting for Tesla this quarter? According to data from Benzinga, Wall Street estimates that Tesla will report earnings-per-share (EPS) of $0.86 and reported revenue of $23,590 billion. If correct, these statistics would mean a 20% EPS decrease but a 26% revenue jump from last year. While these results would be mixed, they could move the needle for TSLA stock in the short term. Goldman Sachs issued the following statement on the company ahead of earnings:
“We remain positive on Tesla shares, although we modestly lower our 2023/2024 EPS estimates & our 12 month price-target reﬂecting the lower US vehicle pricing the company instituted on 4/6/23. … We maintain our Buy rating on TSLA shares as we continue to believe that the company is well positioned for long term growth given its leadership position both in terms of cost structure and as a full solution provider in clean mobility (e.g. software, services, and charging).”
Other analysts, including Dan Ives of Wedbush Securities and Adam Jonas of Morgan Stanley, remain bullish on the stock, expecting the Tesla earnings report to generate positive results. A notorious TSLA stock bull, Ives believes the company’s recent price cuts will help the company make progress in the coming year.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. O’Brient loves helping everyone understand the complexities of economics. He is ranked in the top 15% of stock pickers on TipRanks.
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