Tesla Motors Inc (TSLA) Earnings: What Wedbush Analyst Expects

Tesla Motors Inc (TSLA) Earnings: What Wedbush Analyst Expects
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Tesla Motors Inc (NASDAQ:TSLA) will report its March quarter results on Wednesday, May 7 after the market closes. Wedbush analyst Craig Irwin said in a research note that he expects Q1 results and vehicle deliveries to be in-line or modestly ahead of the consensus estimates. Irwin forecasts $684 million in revenues and 8 cents in earnings per share, well below the Wall Street consensus of $699 million and 10 cents, respectively.

Tesla should easily meet or exceed its vehicle deliveries guidance

Notably, the consensus EPS estimate suggests a 12 cent decline in Tesla Motors Inc (NASDAQ:TSLA)’s earnings. And the first quarter consensus earnings forecast has fallen from 13 cents to 10 cents in the last 60 days. Quite surprisingly, Stifel analysts James Albertine and Lucy Webster last week slashed their EPS estimates for Tesla from 26 cents to 13 cents. For the current quarter, analysts forecast 27 cents in earnings on revenues of $818.74, up 48% from the corresponding quarter of 2013. Full year revenues are expected to soar 47% to $3.65 billion with $1.78 in earnings. 

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Wedbush said it expects Tesla Motors Inc (NASDAQ:TSLA) to meet its vehicle deliveries guidance of 6,400 units, up from 4,900 vehicles in the same quarter last year. Craig Irwin says the electric vehicle maker has the potential to exceed its guidance by 100-200 units. He expects first quarter gross margins of 25.3%, up from 17.1% in the same quarter last year. Tesla’s ASP is expected to go up from $93,000 in Q1 of 2013 to $104,000 in the latest quarter.

Analysts expect Tesla to reveal more about Gigafactory and China

Wedbush has an Outperform rating on the stock with $275 price target. The research firm expects Tesla Motors Inc (NASDAQ:TSLA) to provide details of its foray into Chinese market and the Gigafactory. Tesla began selling Model S sedan in China last month. Last week, reports surfaced that Tesla is planning to build its Gigafactory in two states to minimize the risk. Each of the four states the company has been considering-Nevada, Arizona, New Mexico and Texas- have offered lucrative incentives to attract the $5 billion investment.

Tesla Motors Inc (NASDAQ:TSLA) shares inched up 0.18% to $217 in pre-market trading Tuesday.

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