Rivian Automotive jumps in premarket after Q3 results

Rivian Automotive (RIVN.US) reported earnings for Q3 2022 yesterday after the close of the Wall Street session. While the US electric vehicle manufacturer reported a miss in revenue, it has also reported a smaller than expected adjusted loss per share. Q3 revenue came in at $536 million (exp. $551.6 million) while adjusted loss per share came in at $1.57 (exp. -$1.82). Net loss of $1.72 billion was wider than $1.23 billion reported in Q3 2021. End-of-the-quarter cash balance also dropped and stood at $13.8 billion at the end of Q3 2022, down from $15.5 billion at the end of Q2 2022. Company said, however, that it is confident that its cash hoard will last through 2025. Pre-orders for Rivian R1-series trucks and SUVs climbed from 98,000 during Q2 2022 earnings release in early-August to over 114,000 now.

However, in spite of those mixed headline results, shares of the company rallied over 6% in the premarket trading today. Guidance offered by the company can be named as a reason. While Rivian slashed its 2022 capital expenditure guidance from $2.0 billion to $1.75 billion, it retained vehicle production guidance. Rivian still targets to manufacture 25 thousand vehicles this year. This means a significant production ramp-up in the final quarter of the year given that Rivian manufactured around 14-15 thousand vehicles in Q1-Q3 2022 period. Moreover, the company said that as production volumes increase it has moved to shipping vehicles by rail rather than by trucks, which allows for cost reductions. Full-year EBITDA loss guidance was left unchanged at $5.4 billion.

Rivian's shares are trading over 6% higher in premarket and current premarket quote suggest cash session opening at $29.84 - just slightly below the resistance zone ranging around $30.50 mark. Stock dropped below this zone and moved to the lowest level since early-July yesterday during a broad Wall Street sell-off but it looks like an attempt to climb back above this zone may be made today. Of course, it should be noted that US CPI print at 1:30 pm GMT may have a big impact on the market should we see a big deviation from market expectations and therefore impact of Rivian's earnings release on the stock price may be offset by non-company-specific factors.

Source: xStation5