PHOENIX - Nikola (NASDAQ:NKLA) Corporation (NASDAQ: NKLA), a pioneer in zero-emissions transportation, reported mixed results for the fourth quarter ended December 31, 2023. The company posted a smaller-than-expected loss per share but missed revenue estimates, leading to a slight decline in its stock by 0.17%.
Nikola announced an adjusted loss of $0.11 per share, which was $0.02 better than the analyst consensus of a $0.13 loss per share. However, revenue fell short, coming in at $11.53 million against expectations of $13.15 million. The company's production and delivery of 35 hydrogen fuel cell electric trucks marked a significant milestone as it continues to expand its zero-emissions vehicle offerings.
Despite the revenue miss, Nikola ended the quarter with a robust unrestricted cash balance of $464.7 million, the highest since the fourth quarter of 2021. This financial strength underpins the company's ongoing efforts to scale hydrogen fuel cell electric truck production and deploy modular fuelers to support fleets.
Nikola's President and CEO, Steve Girsky, highlighted the company's progress, stating, "We began delivering production hydrogen fuel cell electric trucks in Q4, fleets are fueling daily at our modular refueling station in Ontario, California, we continue to rack up HVIP vouchers, and we are on track to start getting our battery-electric trucks back to end users by the end of the first quarter."
The company's achievements in the quarter also included the delivery of the first production hydrogen fuel cell electric truck in North America and the opening of its first HYLA modular refueling station in Ontario, California. Furthermore, Nikola reported that 225 additional voucher requests for its hydrogen fuel cell electric trucks have been submitted in California from October 2023 through January 31, 2024, all for Nikola, underscoring the demand for its products.
Looking ahead, Nikola remains focused on optimizing revenue and costs and is on track to reintroduce battery-electric trucks with new battery packs to end users by the end of the first quarter. The company's guidance for upcoming quarters was not provided in the press release, so a comparison to analyst consensus for future periods could not be made.
The slight stock movement following the earnings release suggests that investors are cautiously digesting the mixed results, weighing the revenue miss against the company's strategic advancements and cash position. As Nikola continues to navigate the competitive landscape of zero-emission vehicles, its ability to execute on production and delivery targets will be closely watched by investors.
InvestingPro Insights
Nikola Corporation's (NASDAQ: NKLA) latest earnings report has brought to light a mix of challenges and achievements. The company's stock has seen significant volatility, as reflected in the InvestingPro Data. With a market capitalization of $810.34 million, Nikola's financial metrics indicate a tough road ahead. The P/E ratio, standing at -0.44, and an even lower adjusted P/E ratio for the last twelve months as of Q3 2023 at -0.81, underscore the company's current lack of profitability. This is further supported by the revenue decline of over 30% for the same period.
InvestingPro Tips for Nikola highlight some critical aspects for investors to consider. The company holds more cash than debt on its balance sheet, which is a positive sign of liquidity. However, it is also quickly burning through cash, which raises concerns about its long-term financial sustainability. Analysts are not optimistic about sales in the current year, expecting a decline, and they do not anticipate the company will be profitable this year. This aligns with the reported gross profit margin of -717.83% for the last twelve months as of Q3 2023, indicating substantial inefficiencies.
For those seeking more insights, there are additional InvestingPro Tips available that delve deeper into Nikola's financial health and stock performance. With a total of 17 InvestingPro Tips, investors can gain a more comprehensive understanding of the risks and potential of Nikola's stock. Interested readers can find these tips by visiting https://www.investing.com/pro/NKLA, and can benefit from an additional 10% off a yearly or biyearly Pro and Pro+ subscription using the coupon code PRONEWS24.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.