Tesla Inc (NASDAQ:TSLA) will post its second-quarter 2023 financial results after market close on July 19, with the electric vehicle maker having the potential for another quarterly earnings beat, according to analysts at Zacks Equity Research.
Their consensus earnings per share (EPS) forecast for the quarter is $0.69, $0.04 better than Tesla reported during the same period last year.
Zacks noted that Tesla has topped estimates by 5.79%, on average, in the last two quarters.
Shares of Tesla rose 2% to $298.72 in late-morning trading on Wednesday ahead of the company's earnings report after the bell.
That said, there are concerns over the company’s operating margins and the impact of price cuts on revenue as electric vehicle competition increases in China, which account for more than half of Tesla’s global sales.
“We believe margins will trough the next few quarters,” Dan Ives, an analyst at Wedbush Securities, told Reuters recently.
The analyst, though, believes Tesla’s aggressive price cut strategy was near-term pain for long-term strategic gain.
“In our opinion, Musk & Co. continue to play chess while others play checkers as this price cut move came from a position of strength for Tesla with EV competitors coming from every angle around the globe,” he wrote.
Earlier, Tesla announced that it delivered a record 466,140 vehicles in the second quarter, up 10% from the previous quarter and 83% higher than a year ago.
Analysts, on average, had expected the company to deliver 445,000 cars, according to nine analysts polled by Refinitiv.
Contact Sean at sean@proactiveinvestors.com
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