Nuscale Power earnings missed by $0.02, revenue fell short of estimates
Investing.com - Wedbush has lowered its price target on Rivian Automotive Inc (NASDAQ:RIVN) stock to $16.00 from $18.00 while maintaining an Outperform rating following the company’s second-quarter results. According to InvestingPro data, six analysts have recently revised their earnings estimates downward, though the company maintains strong liquidity with a current ratio of 3.73.
Rivian reported second-quarter revenue of $1.303 billion, slightly exceeding analyst expectations of $1.290 billion, benefiting from higher average selling prices (ASPs). The company’s software and services segment grew to $376.0 million from $318.0 million in the prior period. InvestingPro analysis shows trailing twelve-month revenue reaching $5 billion, though gross profit margins remain weak at -9.33%.
The electric vehicle manufacturer reported that approximately $182.0 million of its revenue came from its joint venture with Volkswagen (ETR:VOWG_p). Rivian’s new electrical architecture and software development services have gained further traction across its customer base.
Despite the revenue beat, Rivian missed bottom-line expectations and lowered its adjusted EBITDA guidance as it navigates what Wedbush describes as a "murky EV macro backdrop." The guidance reduction reflects challenges related to regulatory credit changes and tariff impacts on the business.
Wedbush cited "continued tariff challenges over the coming quarters" as the primary reason for its price target reduction, while noting that Rivian "continues to be a work in progress as the company navigates through supply chain difficulties."
In other recent news, Rivian Automotive Inc. reported its second-quarter revenue of $1.3 billion, which aligned with forecasts but showed a wider-than-expected loss per share at $0.97, missing the anticipated loss of $0.66. Despite meeting revenue expectations, the company posted an adjusted EBITDA loss of $667 million, surpassing the consensus expectation of $493 million. This financial performance has led to various analyst actions. Needham adjusted its price target for Rivian to $14 from $16, citing a more conservative near-term demand outlook and increased 2025 adjusted EBITDA loss guidance, while maintaining a Buy rating.
JPMorgan also revised its price target downward to $9 from $10, maintaining an Underweight rating, reflecting concerns over the wider losses reported. Meanwhile, Goldman Sachs maintained its Neutral rating with a $12 price target, noting the lower-than-expected EBITDA attributed to reduced regulatory credit revenue and higher vehicle costs. These developments highlight the mixed analyst sentiment surrounding Rivian following its recent earnings report.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.