Workhorse Falls as Revenue Trails Expectations

Electric-vehicle producer Workhorse was lower after it reported fourth-quarter sales of $652,000, trailing the analyst estimate of $1.3 million.
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Workhorse Group  (WKHS) - Get Report shares slipped after the electric-vehicle maker’s fourth-quarter revenue trailed expectations.

The stock also continues to suffer from the U.S. Postal Service’s decision last week to award a potentially huge contract to build new delivery trucks to Workhorse rival Oshkosh  (OSK) - Get Report. Many analysts expected Workhorse to take home at least part of the contract.

Workhorse Group recently traded at $15.82, down 2.2%. The stock has slumped 50% in the past week.

Fourth-quarter revenue was $652,000 compared with $3,000 in the year-earlier quarter. The latest figure trailed the FactSet average analyst forecast of $1.3 million.

Net income registered $280.5 million against $655,000 a year earlier. The FactSet analyst consensus was a loss of $15.1 million. 

Workhorse said the earnings reflected its 10% investment in Lordstown Motors  (RIDE) - Get Report, which in October closed a combination with DiamondPeak, a special-purpose-acquisition company.

An increase in truck production and deliveries boosted results, Workhorse said. "We're entering the new year in our strongest-ever position, both financially and operationally," Chief Executive Duane Hughes said in a statement.

"Counting over $200 million of cash on our balance sheet, we are well capitalized to expand our manufacturing throughput, and with over 8,000 vehicles in our backlog, we now have the order book to reliably build for our multiyear growth plan.”

Further, “our management team and expanded production workforce are continuing to collaborate closely with our strategic partners, Hitachi and Belcan. We are currently faced with various supply chain challenges, both internal and external, in the ramp-up to our stretch production goal for 2021,” Hughes said.