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Earnings Results: Rivian posts narrower quarterly loss than Wall Street feared, keeps production guidance intact

Earnings Results: Rivian posts narrower quarterly loss than Wall Street feared, keeps production guidance intact

Rivian Automotive Inc. stock rallied in the extended session Wednesday after the electric-vehicle maker posted a narrower-than-expected quarterly loss and kept its 2022 production estimates intact despite saying supply-chain snags continue to be a concern.


said it lost $1.72 billion, or $1.88 a share, in the third quarter, compared with a loss of $1.23 billion, or $12.21 a share, in the year-ago period.

Adjusted for one-time items, the company lost $1.57 a share. Revenue rose to $536 million.

FactSet analyst consensus called for an adjusted loss of $1.79 a share on revenue of $550 million.

The stock rose 2% immediately after the results, and rallied more than 8% as Rivian executives hosted a post-results call with analysts.

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On the call, the Rivian executives highlighted continued demand for its pricey EVs and the company’s focus on ramping up its production despite the supply-chain problems.

“We do see healthy growth quarter over quarter,” Chief Executive RJ Scaringe said in the call.

“The continued (production) ramp and continued growth in deliveries is our core, core focus,” Scaringe said.

Rivian also stuck with its 2022 production guidance of 25,000 vehicles and its call for an adjusted EBITDA loss of $5.45 billion for the year.

Rivian has produced a little over 14,300 vehicles so far in the year, and more than 15,000 vehicles since the start of production late last year.

The company also lowered its capital expenditure guidance to $1.75 billion “due to our streamlined product roadmap and the shift of certain capital expenditures to 2023,” it said in a letter to shareholders. It ended the quarter with $13.8 billion in cash and equivalents.

See also: Lucid posts wider quarterly loss, says it is ‘on track’ with luxury EV production

Rivian’s “balance sheet is in better shape than most other upstart EV manufacturers from a liquidity standpoint,” CFRA analyst Garrett Nelson said in a note Wednesday.

The company, however, “is far from reaching the scale needed to drive down its unit costs and move closer to profitability … Meanwhile, its cash burn rates are concerning,” he said. Nelson kept his sell rating on Rivian’s stock.

Rivian debuted on capital markets in November 2021, with the stock soaring well above its initial public offering price on its first day of trading.

Production rates at Rivian’s Normal, Ill., factory give the company “confidence” in its ability to ramp production, Rivian said in the letter. “However, we believe that supply-chain constraints will continue to be the limiting factor of our production.”

Rivian said it had more than 114,000 preorders for its vehicles in the U.S. and Canada as of Monday.

On the call with analysts, Chief Financial Officer Claire McDonough said Rivian would not provide preorder numbers in future earnings reports, saying it had become an “increasingly less important measure” of progress.

Rivian shares have lost 73% this year, far underperforming the broader market, with the S&P 500 index

down about 21% in the same period.

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