Why Is REE Automotive Stock Trading Lower Today?
Portfolio Pulse from Shivani Kumaresan
REE Automotive Ltd (NASDAQ:REE) reported a Q4 FY23 sales increase of 116% Q/Q to $455,000, missing analyst estimates of $1.35 million. Operating expenses rose to $36.7 million, and the non-GAAP EPS loss widened to $(3.15), missing consensus estimates of $(2.38). The operating loss expanded to $(37.2) million, and adjusted EBITDA loss grew to $(32.2) million. The company ended the quarter with $86 million in liquidity but used $(89.3) million in operating cash flow during the year. Despite challenging macroeconomic conditions, CEO Daniel Barel expressed confidence in the company's market position and its path to commercialization. The order book value exceeded $50 million as of March 27, 2024, and the authorized dealer network expanded to 66 locations in the U.S. and Canada. REE shares dropped 4.92% to $5.80 in premarket trading.
March 27, 2024 | 1:18 pm
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
REE Automotive reported lower than expected Q4 FY23 sales and a widened loss, but remains optimistic about its commercialization path. Shares fell 4.92% in premarket trading.
The significant miss in sales expectations and the widened loss are likely to negatively impact investor sentiment in the short term, leading to a decrease in stock price. However, the CEO's optimism and the reported progress in commercialization may mitigate some of the negative impact.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100