The electric vehicle manufacturer Fisker Inc. (NYSE:FSR) reported a surge in stock value today after submitting their long-awaited third-quarter financial results. The company's shares climbed nearly 7% following the release of the report, which had been delayed due to internal adjustments and the recent departure of their Chief Accounting Officer.
The quarterly report revealed that Fisker's revenues totaled $71.8 million, a figure that fell significantly short of analysts' expectations of $143.1 million. Despite this revenue shortfall, premarket trading saw the company's shares increase by 9.43%, reaching $2.32.
In response to the financial disclosure, Goldman Sachs (NYSE:GS) analyst Mark Delaney reiterated a Sell rating on Fisker's stock, slashing his price target to $2 from the previously set $8. This adjustment comes even as Fisker implemented price reductions for its Ocean Extreme model and made improvements to its delivery logistics.
The filing with the Securities and Exchange Commission (SEC) came after Fisker addressed material adjustments and weaknesses in controls related to an increased volume of transactions. It was noted that $20 million in expenses were reallocated from Selling, General & Administrative costs (SG&A) to production costs. This reallocation was part of the reason for the delay in reporting, which had earlier triggered a non-compliance notice from the New York Stock Exchange (NYSE).
Additionally, preliminary earnings released earlier in November had indicated a subsequent $4 million increase in net loss due to inventory corrections. The financial update comes after a challenging period for Fisker marked by significant internal changes and market pressures.
Investors and market watchers are closely monitoring Fisker's performance as the electric vehicle industry continues to evolve rapidly, with competition intensifying and consumer demand for sustainable transportation solutions growing.
InvestingPro Insights
In light of Fisker Inc.'s recent financial results and market performance, InvestingPro provides real-time data and analysis that could be crucial for investors. The company's market capitalization stands at $743.18 million, reflecting its current valuation in the market. Despite an impressive revenue growth rate of over 94,872% for the last twelve months as of Q3 2023, it's important to note that the company's gross profit margin is in the negative at -44.55%, indicating that it spends more to produce its goods than it earns from their sale.
InvestingPro Tips suggest that while Fisker's revenue growth has been accelerating, the company may face difficulties in making interest payments on its debt. Furthermore, analysts are anticipating sales growth in the current year, which could be a positive sign for potential investors. However, it's crucial to consider that the company has been quickly burning through cash and operates with a poor return on assets.
For those looking to dive deeper into Fisker's financial health and future prospects, InvestingPro offers a wealth of additional tips. Currently, there are 21 more tips available which can provide a more comprehensive understanding of the company's position and outlook. As a special offer, a subscription to InvestingPro is now available with a Black Friday discount of up to 55%, allowing investors to access these valuable insights at a reduced cost.
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