Tesla Motors Earnings: Here’s Why the Stock is Rising Now

Tesla Motors, Inc. (NASDAQ:TSLA) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 14.88%.

Tesla Motors, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.05 in the quarter versus EPS of $-0.89 in the year-earlier quarter.

Revenue: Rose 1420.08% to $405.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Tesla Motors, Inc. reported adjusted EPS income of $0.05 per share. By that measure, the company beat the mean analyst estimate of $-0.17. It beat the average revenue estimate of $383.4 million.

Quoting Management: “While profits were still modest in absolute terms and not our primary mission, net income increased by 70% from last quarter, driven by record Model S deliveries and a significant improvement in automotive gross margin,” Tesla CEO Elon Musk said in the company’s Q2 letter to shareholders.

Key Stats (on next page)…

Revenue decreased 27.89% from $561.79 million in the previous quarter. EPS decreased 58.33% from $0.12 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.01 to $0. For the current year, the average estimate has moved down from a profit of $0.05 to a loss of $0.03 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)