Lion Electric swings to profit on one-time gain, and revenue rises 77% but is shy of expectations

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Lion Electric Co. LEV, said Friday that it swung to a second-quarter profit, helped by a large one-time gain, while revenue rose 77% but was a bit shy of expectations. The maker of electric urban trucks and buses said net income for the quarter to June 30 was $29.44 million, or 19 cents a share, after a loss of $180.2 million, or $1.13 a share, in the year-ago period. The results included a $56.9 million gain related to the decrease in the fair value of share warrant obligation and a $3.4 million share-based compensation charge. The FactSet consensus was for a per-share loss of 7 cents. Revenue grew to $29.52 million from $16.69 million, as vehicle sales volume jumped to 105 from 61, but missed the FactSet consensus of $30.3 million. Meanwhile, cost of sales more than doubled amid increased production levels and higher manufacturing and inventory management costs, rising 109% to $32.97 million, as gross margin contracted to negative 11.7% from positive 5.4%. “We are pleased with our Q2 performance, as in spite of ongoing supply-chain challenges, for the third quarter in a row, we delivered a record number of vehicles in the history of Lion,” said Chief Executive Marc Bedard. The stock, which was still inactive in premarket trading, has lost 11.1% over the past three months while the S&P 500 SPX, -0.16% has edged up 0.1%.

This article was originally published by Marketwatch.com. Read the original article here.

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