This update corrects EPS numbers for Rivian.
Rivian Automotive Inc. shares were flat in the extended session Tuesday after the EV maker reported a narrower-than-expected quarterly loss, revenue that beat Wall Street expectations, and called for higher production numbers this year.
Rivian RIVN, +2.14% stock had dropped immediately after the results but turned direction as company executives spoke on a call with analysts, and closed the after-hours session at $24.80, even with where they ended the regular trading day.
They highlighted Rivian’s cost-savings steps and the goal of turning a gross profit next year, reassured investors about continued demand for their pricey EVs, and highlighted the higher production outlook for the year. At last check, the stock was up 1% after hours.
Rivian “achieved meaningful reductions” in its vehicles, including its last-mile electric delivery van, “across key components, including material costs, manufacturing labor, overhead and logistics,” Rivian’s Chief Executive RJ Scaringe said during the call.
“Maintaining our cost-reduction efforts through consistent focus and collaboration across all levels of the company is a core part of the culture we’re building,” he said.
Rivian lost $1.2 billion, or $1.88 a share, in the second quarter, compared with a loss of $1.7 billion, or $1.89 a share, a year ago. Adjusted for one-time items, Rivian lost $1.08 a share.
Revenue rose to $1.12 billion thanks to quarterly sales that exceeded expectations, the company said.
FactSet consensus called for a loss of $1.43 a share for Rivian on sales of $1.02 billion.
Rivian bumped its 2023 production outlook to 52,000 vehicles, from a previous expectations of 50,000 vehicles.
The results were “all-around strong,” Truist Securities analyst Jordan Levy said in a note Tuesday.
Rivian saw improvements in gross margins, thanks to its production and cost-saving initiatives and that appears “to be driving margin improvements faster than our prior expectations,” Levy said.
Rivian surprised Wall Street last month by announcing second-quarter deliveries that nearly tripled, and production data that more than tripled from a year ago.
See also: Rivian’s stock has been rocketing, and this analyst now urges a pause
Rivian shares have gained 36% so far this year, compared with an advance of about 17% for the S&P 500 index SPX.
This article was originally published by Marketwatch.com. Read the original article here.
