The Lion Electric Company (LEV) Reports Q3 Loss, Lags Revenue Estimates

Financial Performance - The Lion Electric Company reported a quarterly loss of $0.15 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.13, and compared to a loss of $0.10 per share a year ago, indicating a decline in performance [1] - The company posted revenues of $30.63 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 10.77%, and a significant drop from year-ago revenues of $80.35 million [2] - Over the last four quarters, the company has only surpassed consensus EPS estimates once, indicating ongoing challenges in meeting market expectations [2] Stock Performance - Lion Electric shares have declined approximately 66% since the beginning of the year, contrasting sharply with the S&P 500's gain of 21.2% [3] - The current Zacks Rank for Lion Electric is 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.10 on revenues of $47.74 million, and for the current fiscal year, it is -$0.41 on revenues of $167.6 million [7] - The trend of estimate revisions for Lion Electric is mixed, which could change following the recent earnings report [6] Industry Context - The Automotive - Domestic industry, to which Lion Electric belongs, is currently ranked in the bottom 25% of over 250 Zacks industries, which may negatively impact the stock's performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry outlook can significantly affect stock performance [5][8]