Rivian (RIVN) Set to Announce Q3 Earnings: Key Expectations

Rivian Automotive (RIVN) is poised to announce its third-quarter earnings on November 4, 2023, after market hours. Investors and analysts are approaching this announcement with caution due to recent shifts in delivery expectations and market conditions.

Key Expectations for Rivian’s Q3 Earnings

Wall Street analysts predict a narrower loss per share of $0.74, down from a loss of $0.97 in the same quarter last year. They also anticipate a significant revenue increase, forecasting a 73% year-over-year rise to $1.51 billion.

Delivery Performance

• Rivian reported Q3 deliveries of 13,201 vehicles.
• This reflects a 32% increase compared to the previous year.
• Investors made purchases before the $7,500 EV tax credit expired, boosting deliveries.

Analysts’ Views on RIVN Stock

Leading up to the earnings report, several analysts revised their ratings and price targets for RIVN stock:

• Mizuho analyst Vijay Rakesh downgraded Rivian from Hold to Sell, lowering the price target from $14 to $10.
• Rakesh cited a declining EV sales outlook following the end of the tax credit, reducing 2026 delivery estimates from 68,000 to 60,000 units.
• JPMorgan analyst Ryan Brinkman raised the price target to $10 from $9 while maintaining a Sell rating due to weak demand forecasts.

AI Analyst’s Perspective

TipRanks’ AI Analyst has assigned a Neutral rating to Rivian, suggesting a price target of $13.50, which implies a potential upside of 2.35%. The AI analysis indicates challenges such as negative margins and substantial debt, although growth in software and services may offer a brighter outlook.

Market Reactions and Expectations

Options traders expect significant movement in RIVN stock following the earnings announcement. The predicted price fluctuation is about 9.70% in either direction. This indicates traders are bracing for impactful news from Rivian’s Q3 results.

Overall Consensus

Currently, RIVN stock holds a Hold consensus rating, derived from 10 Hold recommendations, seven Buys, and five Sells. The average price target of $13.69 suggests a potential upside of 3.8% from its current trading level, with the stock largely flat year-to-date.