Workhorse Significantly Misses Q3 Revenue Estimates Impacted By HVIP Voucher Delays, Slashes FY23 Outlook Again
Portfolio Pulse from Lekha Gupta
Workhorse Group Inc (NASDAQ:WKHS) reported Q3 FY23 sales of $3.03 million, significantly below the consensus estimate of $20.9 million. The company faced delays in HVIP voucher availability in California, impacting its ability to deliver vehicles. Despite resolving the HVIP issue, Workhorse slashed its FY23 revenue outlook from $65-$85 million to $10-$15 million, far below the consensus of $63.01 million. The company also reported a narrowed gross loss and is exploring strategic alternatives for its Aero business. Workhorse shares dropped by 4.18% following the news.
November 14, 2023 | 4:57 pm
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Workhorse Group reported disappointing Q3 results with sales of $3.03 million vs. $20.9 million expected. Gross loss narrowed, but EPS loss was greater than anticipated. FY23 revenue guidance was significantly reduced due to HVIP voucher delays in California.
The significant miss in revenue estimates and the subsequent reduction in FY23 guidance are likely to negatively impact investor sentiment in the short term. The HVIP voucher delays have been a major setback for the company, and although resolved, the lowered guidance suggests a cautious outlook. The drop in share price reflects the market's reaction to the news.
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IMPORTANCE 90
RELEVANCE 100