QuantumScape Corporation's Q4 Earnings Report: What to Expect
QuantumScape Corporation (QS) is scheduled to announce its fourth-quarter 2023 financial results after the market closes on February 14. Investors and analysts are eagerly awaiting the company's performance update, particularly in light of recent developments and market expectations.
Zacks Consensus Estimate and Previous Performance
- The Zacks Consensus Estimate for QuantumScape's fourth-quarter loss stands at 23 cents per share. This implies a growth of 8% compared to the same period last year.
- Notably, the estimate for the fourth-quarter loss per share has remained unchanged over the past 90 days.
- In the previous quarter, QuantumScape reported a net loss of 23 cents per share, wider than the Zacks Consensus Estimate of a loss of 21 cents.
- Over the trailing four quarters, the company surpassed the bottom-line estimate once and missed on the remaining three occasions, with an average negative surprise of 4.88%.
Key Developments to Note
- In the third quarter of 2023, QuantumScape's A0 prototype cell showcased exceptional performance, surpassing 1,000 full cycle equivalents. It retained over 95% of its discharge energy under specific test conditions.
- QuantumScape's first commercial product, QSE-5, is expected to feature higher-loading cathodes and more efficient packaging compared to its A0 prototype cell. The company aims to produce QSE-5 cells in large volumes with high quality and reliability, with plans to start shipping this year.
Challenges and Expenses
- Despite positive developments, QuantumScape faces challenges related to escalating expenses. In the previous quarter, the company's capital expenditure and cash operating expenses were $18 million and $64 million, respectively.
- For the full year 2023, QuantumScape expects capital expenditure to range between $75 million and $100 million, and cash operating expenses to range between $225 million and $275 million. These expenses might impact the company's upcoming results.
Earnings Whispers and Market Expectations
- Market analysts are cautious about predicting an earnings beat for QuantumScape in the to-be-reported quarter. The company's Earnings ESP (Earnings Expected Surprise Prediction) stands at 0.00%, indicating that the Most Accurate Estimate of a loss aligns with the Zacks Consensus Estimate.
- Additionally, QuantumScape holds a Zacks Rank #3, which doesn't significantly increase the odds of an earnings beat according to the Zacks model.
Stocks With Favorable Outlook
- Lucid Group, Inc. (LCID), Rivian Automotive, Inc. (RIVN), and LKQ Corporation (LKQ) are among the companies in the auto space that have favorable factors for potential earnings beats.
- These companies possess a combination of positive Earnings ESP and a Zacks Rank #3, indicating better chances of exceeding earnings estimates compared to QuantumScape.
Conclusion
QuantumScape's upcoming earnings report is highly anticipated, with market analysts closely monitoring the company's financial performance, developments in its product offerings, and challenges related to expenses. While positive developments in its battery technology are promising, investors remain cautious about the company's ability to control escalating expenses and deliver consistent financial results.
FAQs
What is the significance of the Zacks Consensus Estimate for QuantumScape's fourth-quarter loss? The Zacks Consensus Estimate provides insight into market expectations regarding QuantumScape's financial performance, particularly in terms of profitability.
How have QuantumScape's previous earnings reports compared to analyst estimates? QuantumScape has experienced mixed results in previous earnings reports, with occasional surprises but an overall trend of missing analyst estimates.
What are some key developments to note regarding QuantumScape's battery technology? QuantumScape's A0 prototype cell demonstrated exceptional performance, and the company is preparing to launch its first commercial product, QSE-5, which is expected to feature improvements over its predecessor.
What challenges does QuantumScape face in terms of expenses? QuantumScape's expenses, particularly capital expenditure and cash operating expenses, have been escalating. Managing these expenses while continuing to invest in product development and production is a key challenge for the company.
How do QuantumScape's earnings expectations compare to those of other companies in the auto space? While QuantumScape's earnings outlook is cautious, other companies in the auto space, such as Lucid Group, Rivian Automotive, and LKQ Corporation, have a more favorable combination of factors that increase their chances of exceeding earnings estimates.