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Tesla Stock Sentiment Dips Amid Revenue and EPS Estimates

Tesla stock faces a challenging outlook. The company is seeing negative revision trends in earnings estimates and lower-than-expected revenue growth, which could impact investor confidence and stock prices. Analysts' cautious stance continues to weigh on TSLA.

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AI Rating:   5

Earnings Per Share (EPS): Tesla's earnings estimates have seen some recalibrations. For the current quarter, the earnings estimate stands at $0.53 per share, which reflects a positive change of +17.8% compared to the same quarter last year. However, it’s important to note that the estimate has faced a downward revision of -8.4% over the last 30 days. For the current fiscal year, the consensus earnings estimate is $2.85, also indicating a change of +17.8% year-over-year, with a slight downward revision of -3.7%. For the next fiscal year, the EPS estimate is set at $3.69, forecasting a change of +29.3% despite a minor adjustment down by -1.1%. This inconsistency in revisions may cause concern for potential investors regarding the projected earnings growth.

Revenue Growth: Tesla is projected to report revenue of $23.51 billion for the current quarter, indicating a year-over-year growth of +10.4%. In contrast, its latest reported quarter revenue of $25.71 billion showed a mere 2.2% increase year-over-year, falling short of the Zacks Consensus Estimate of $27.5 billion and representing a revenue surprise of -6.53%. The estimates for the upcoming fiscal years stand at $109.9 billion and $127.87 billion, indicating growth rates of +12.5% and +16.4%, respectively. Although these are solid growth indicators, the recent EPS surprises and lower-than-expected revenue results could raise doubts about future earnings potential.

Tesla's current Zacks Rank is #3 (Hold), suggesting it might perform in line with the broader market, given the current investor sentiment shaped by the recent revisions. With Tesla graded F on valuation metrics, it's evident that the company is viewed as trading at a premium compared to its peers, making it less attractive for bargain hunters in the current market climate. The combination of these factors underscores the cautious outlook for Tesla's stock performance in the near term.

Stocks:  TSLA