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,
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.