Shares of Workhorse Group Inc. (WKHS) dropped 2.7% in premarket trading on Tuesday following disappointing third-quarter results. The maker of electric delivery vehicles reported a significant revenue miss and provided a downbeat full-year outlook, citing delays in clean truck and bus vouchers (HVIP) in California as the primary factor impacting their results.
Narrowing Losses but Missed Expectations
Workhorse Group narrowed its net loss to $30.6 million, or 14 cents per share, compared to a loss of $35.4 million, or 22 cents per share, in the same period last year. However, the company failed to meet the FactSet consensus estimate of a per-share loss of 12 cents.
Revenue Increase Falls Well Short
While sales experienced a significant increase of 95.5% to $3.03 million, it fell considerably short of the FactSet consensus estimate of $20.9 million.
Bleak Outlook for 2023
Workhorse Group's full-year outlook for 2023 is not promising, as the company now expects revenue to range between $10 million and $15 million. This forecast is significantly below the current FactSet consensus estimate of $63.0 million.
HVIP Voucher Delays Resolved
Chief Executive Rick Dauch provided information regarding the HVIP voucher delays, stating that they have successfully resolved the issue and are now moving swiftly ahead.
Workhorse Group's stock has seen a sharp decline, falling 53.4% over the past three months. The company hit a record low of 37.8 cents on November 9th. In comparison, the Global X Autonomous & Electric Vehicles ETF (DRIV) has experienced a decrease of 12.3%, while the S&P 500 (SPX) slipped 1.7% during the same period.