Financial Trading Blog
Stock of the day 29/07/2016 – Tesla Motors Inc
Unsurprisingly for a company that is valued as much for its ideas as it is for its financial performance Tesla has been all over the place price-wise since 2016 began. Opening the year at $228.34 the stock quickly found itself in trouble, plunging to a 13 month low of $135.03 by the middle of February. Yet on the same day as this year-plus nadir Tesla’s fourth quarter figures sparked a comeback, the stock surging all the way back to $269.22 (around $20 away from its all-time highs) by the start of April. Frustratingly for the company this was to be the end of its impressive climb, with Tesla finding itself stuck below $240 for the 2 and a half months. It now sits at a current trading price of $230.69 (IT-Finance.com, 29/07/2016).
(Source: IT-Finance.com 29/07/2016)
As mentioned Tesla’s fourth quarter figures in February managed to turn the company’s dire start around. Interestingly, however, the motor firm’s figures weren’t particularly impressive; if anything, they were pretty damn toxic. While revenue rose 59% to $1.75 billion, it saw a wince-worthy widening of its adjusted losses, from 13 cents to 87 cents per share year-on-year. Yet despite all this a positive guidance for fiscal 2016 helped investors ignore these ugly figures, sending the stock nearly 13% higher on the day of the earnings release.
Investors were similarly enthused by the company’s first quarter figures in May, with Tesla just about meeting analysts’ expectations with a loss of 57 cents per share off the back of a 45% increase in revenue to $1.6 billion. The brunt of the positive reaction, however, once again came from the company’s outlook, with demand still strong for its Model 3 car.
In terms of Tesla’s second quarter figures next Wednesday analysts are expecting the company to see an adjusted loss of 54 cents per share, worse than the 48 cents lost posted last, though with a 37% surge in revenue to $1.64 billion. Of course any comments from the eccentric Elon Musk will likely be what dominate the headlines after the Q2 data is released, unless the company produces anything really ugly.
Tesla Motors Inc has a consensus rating of ‘Hold’ with an average target price of $260.10.
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