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Lucid Group (LCID - Free Report) is scheduled to release third-quarter 2023 results on Nov 7 after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at a loss of 27 cents per share and $153.44 million, respectively. The consensus mark for Lucid’s third-quarter loss per share narrowed by 4 cents in the past 30 days.

Lucid’s bottom-line estimates imply growth of 32.5% from the year-ago reported figure. The Zacks Consensus Estimate for its quarterly revenues suggests a year-over-year decline of 21.5%.

In the last reported quarter, it posted a net loss of 40 cents per share, wider than the Zacks Consensus Estimate of 35 cents per share and the year-ago loss of 33 cents. It reported revenues of $150.87 million, missing the Zacks Consensus Estimate of $202 million but rising from $97.34 million recorded in the year-ago quarter.

Over the trailing four quarters, Lucid has missed earnings estimates on all the trailing four quarters, the average negative surprise being 12.08%. This is depicted in the graph below:

Lucid Group, Inc. Price and EPS Surprise

Lucid Group, Inc. price-eps-surprise | Lucid Group, Inc. Quote

Let’s take a look at how things have shaped ahead of its third-quarter earnings release.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Lucid. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as elaborated below.

Earnings ESP: Lucid has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate of loss is pegged at par with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: LCID currently carries a Zacks Rank #2.

Factors to Note

In the third quarter, Lucid produced 1,550 vehicles, plus more than 700 additional vehicles in transit to Saudi Arabia for final assembly, up from 2,173 vehicles in the second quarter. The company delivered 1,457 vehicles in the third quarter, up from 1,404 in the second quarter. The rise in deliveries is likely to have benefited Lucid’s performance in the to-be-reported quarter.

Discouragingly, Lucid’s cost of revenues shot up to $555.8 million, up from $292.3 million in the corresponding quarter of 2022. Also, the company’s selling, general and administrative expenses increased to $197.7 million from $163.8 million in the corresponding quarter of 2022. Rising cost of sales and higher operating expenses are likely to have hurt Lucid’s margin in the to-be-reported quarter.

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