What to Expect from Tesla Motors

Tesla Motors (Nasdaq: TSLA  ) is expected to report Q3 earnings on Nov. 5. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Tesla Motors's revenues will shrink -15.7% and EPS will remain in the red.

The average estimate for revenue is $48.6 million. On the bottom line, the average EPS estimate is -$0.91.

Revenue details
Last quarter, Tesla Motors booked revenue of $26.7 million. GAAP reported sales were 54% lower than the prior-year quarter's $58.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at -$0.89. GAAP EPS were -$1.00 for Q2 versus -$0.60 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 17.9%, 1,390 basis points worse than the prior-year quarter. Operating margin was -398.4%, 29,740 basis points worse than the prior-year quarter. Net margin was -396.2%, 29,490 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $399.9 million. The average EPS estimate is -$3.00.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 565 members out of 967 rating the stock outperform, and 402 members rating it underperform. Among 237 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 83 give Tesla Motors a green thumbs-up, and 154 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tesla Motors is outperform, with an average price target of $39.79.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Tesla Motors. Motley Fool newsletter services recommend Tesla Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (2) | Recommend This Article (1)

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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On October 31, 2012, at 3:33 PM, jswap1 wrote:

    What to Expect from Tesla Motors? Continuing massive losses, followed by bankruptcy.

  • Report this Comment On October 31, 2012, at 5:44 PM, gene132 wrote:

    Yes, the electric car is a niche product. There is a limited market, and one that will drop as better alternatives emerge (diesel hybrid, compound turbine).

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