QS Stock Down Ahead Of QuantumScape Earnings Report
QuantumScape Earnings Report
Estimates: Analysts expect a loss of 7 cents a share on zero revenue growth, according to FactSet, narrowing from a Q1 loss of 9 cents a share and a Q4 loss of $1.26 a share.
As a development-stage company, QuantumScape may not have any sales worth speaking of for years.
Results: Check back later.
In March, Volkswagen increased its investment in QuantumScape by an additional $100 million. On May 14, QuantumScape announced a joint venture with Volkswagen tied to a pilot-line facility in Germany, called QS-1. QuantumScape is also ramping up a planned pre-pilot line in its San Jose headquarters, called QS-0. It plans to move into QS-0 in Q4 while targeting commercial production in the 2024-2025 time frame
Outlook: In May, QuantumScape guided for full-year 2021 spending on operations and capex of $260 million-$320 million, up at the midpoint from its prior outlook for $230 million-$290 million.
Shares lost nearly 5% to 21.43 in Tuesday’s stock market trading, still mired below a falling 50-day line. QS stock soared after debuting via a merger with a special purpose acquisition company, or SPAC, in November. But shares are more than 80% below their December 2020 peak. Concerns linger about its timeline to commercialization and ability to scale.
EV battery maker Romeo Power (RMO) fell 6.5%. Decarbonization Plus Acquisition Corp III (DCRC), a SPAC that is combining with QS rival Solid Power, lost 0.6% Tuesday. Shares of the combined company are set to debut in Q4 and will trade under the symbol SLDP.
QuantumScape is developing next-generation, solid-state lithium-metal batteries for electric vehicles. Compared to current lithium-ion batteries, this next-gen technology offers higher energy density, enables fast charging, reduces costs and increases battery life, it adds.
In May, QuantumScape reported successfully making full-sized four-layer cells. It said it’s on track to meet its 8-10 layer cell milestone by year end, and to make “commercially relevant prototype samples” by 2022.
QuantumScape “has achieved promising results with its patented ceramic separator,” Morgan Stanley analysts say.
But out of five analysts on Wall Street, only one rates QS stock a buy while four have a hold, according to TipRanks.com.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
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