Diving into Earnings Estimates
When it comes to stock watch, Tesla has recently been lighting up the radar like a shooting star streaking across the night sky. Investors are buzzing about the electric car maker, pondering the key factors that could steer its performance into the future.
Over the past month, Tesla’s shares have surged an impressive +10.4%, dancing merrily ahead of the Zacks S&P 500 composite’s +3.5% advancement. Nestled within the Zacks Automotive – Domestic industry, Tesla seems to have charmed investors as the industry itself posted a 9.4% gain during this period. But where exactly is this fascinating stock headed next?
Unveiling Earnings Revisions
While breaking news or rumors may cause temporary ripples in a stock’s trajectory, the bedrock of investor confidence is often grounded in one key element: earnings. At Zacks, we prefer peering into the looking glass of earnings projections to gauge a company’s fair value, as we believe it rests on the bedrock of future earning potential.
The magic lies in how analysts twirl their quills to revise earnings estimates, painting a picture of what lies ahead. Bolstered by these revisions, Tesla is projected to post earnings of $0.60 per share for the current quarter, showcasing a year-over-year shift of -34.1%.
Our fine-toothed comb also reveals a consensus earnings estimate of $2.46 for the current fiscal year, whispering of a -21.2% change from the preceding year. Yet, the next fiscal year brings a hopeful tune, with an estimated $3.33 earnings per share, signaling a promising +35.4% jump from yesteryears.
Glimpses into Revenue Growth
While earnings whisper the melody of a company’s health, revenue growth sets the stage for the grand performance. Tesla’s current revenue estimates of $24.9 billion for this quarter paint a tale of a slight -0.1% dip from yesteryears. However, the company’s fortunes seem to soar in the coming fiscal years, with estimates of $98.24 billion and $113.03 billion, flaunting +1.5% and +15.1% changes, respectively.
Last Reported Results and Surprises
Glancing in the rearview mirror, Tesla’s last-reported revenues waltzed in at $21.3 billion, carrying a tune of -8.7% compared to yesteryears. The EPS harmonies of $0.45 for the same period echo a less resonant tune than the $0.85 jubilee of a year ago.
A shrewd comparison against the Zacks Consensus Estimate reveals a subtle -3.83% surprise in revenues, while the EPS surprise hums at -2.17%. Tesla, true to its nature, has surpassed EPS estimates just once over the last four quarters, simulating a wistful dance partner who occasionally dazzles in moments of brilliance.
Valuation Insights
No investment waltz is complete without the embrace of valuation metrics. The intricate dance between a stock’s price and the veracity of its intrinsic value is a decisive tango in forecasting price trajectories.
While Tesla’s revival continues to charm investors, proudly wearing a Zacks Value Style Score of F, signaling a premium silhouette against its peers. Peek into the hidden metrics nudging this grade here.
Concluding Thoughts
As we unravel these threads of insights, the tapestry of Tesla’s potential gleams faintly in the horizons. Whether the market winds will carry Tesla to new heights remains a tantalizing question mark. Yet, the Zacks Rank #3 ribbons Tesla with a “Hold” badge, hinting at a harmonious duet with the broader market in the days to come.
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