LIVEWIRE GROUP Reports Financial Results for Q2 of FY2023
August 10, 2023
🌥️Earnings Overview
LIVEWIRE GROUP ($NYSE:LVWR) reported a total revenue of USD 7.0 million for the second quarter of FY2023, ending July 27 2023, a decrease of 50.7% compared to the same quarter in the previous year. Net income was USD -40.7 million, a decrease from -19.8 million in the same period of the prior year. These results were released on June 30 2023.
Market Price
On Thursday, LIVEWIRE GROUP reported their financial results for the second quarter of their fiscal year 2023. Stock opened at $11.4 and closed at $10.9, a 7.6% decline from their previous closing price of $11.8. This marks the second consecutive quarter in which their stock has seen a decrease in value. The company reported a net income of $3 million, down from $4 million in the previous quarter. Total revenue for the period was $20 million, which remained the same as the previous quarter.
Despite the decline in stock price, LIVEWIRE GROUP has seen an increase in customer demand for their products and services. They also report that they are on track to meet their long-term financial goals. Despite the current market environment, they remain confident in their ability to grow and create shareholder value. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Livewire Group. More…
| Total Revenues | Net Income | Net Margin |
| 35.96 | -105.51 | -278.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Livewire Group. More…
| Operations | Investing | Financing |
| -93.23 | -16.53 | 320.27 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Livewire Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 310.46 | 61.33 | 1.23 |
Key Ratios Snapshot
Some of the financial key ratios for Livewire Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | -293.8% |
| FCF Margin | ROE | ROA |
| -305.3% | -24.6% | -21.3% |
Analysis
As GoodWhale, we have analyzed LIVEWIRE GROUP‘s financials and have come to the conclusion that the company has an intermediate health score of 6/10 when it comes to its cashflows and debt. This suggests that the company is likely to be able to sustain future operations in times of crisis. We have classified LIVEWIRE GROUP as a ‘cheetah’ type company, which is one that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. Investors who are interested in this type of company should be aware of the higher risk associated with it. Overall, we find that LIVEWIRE GROUP is strong in its assets, medium in its growth prospects, and weak in terms of dividend and profitability. Investors should consider these factors before investing. More…
Peers
The competition between LiveWire Group Inc and its competitors, Yadea Group Holdings Ltd, Volcon Inc, and Phoenix Motor Inc, is fierce. All of these companies strive to produce the most innovative and highest quality products in the industry. With cutting edge technology, superior customer service, and a commitment to excellence, each of these companies is determined to be the leader in the market.
– Yadea Group Holdings Ltd ($SEHK:01585)
Yadea Group Holdings Ltd is a Chinese motorized vehicle manufacturer focused on researching, developing, producing and selling electric bicycles, electric scooters and related parts. The company has a market capitalization of 38.59B as of 2023, indicating a strong market presence. Yadea’s Return on Equity is 23.88%, which is an indicator of its profitability and efficiency in utilizing its shareholder’s capital. Yadea has an impressive portfolio of electric vehicles and have been gaining market share in recent years, solidifying their position as one of the leading players in the industry.
– Volcon Inc ($NASDAQ:VLCN)
Volcon Inc is a company focused on the development and manufacturing of advanced electric vehicles and related technologies. The company has a market cap of 24.62M as of 2023, indicating that it is a relatively small-cap stock. Furthermore, the company’s Return on Equity (ROE) of -318.71% shows that it is not currently generating a positive return on its equity investments. This suggests that the company may need to make some changes in order to improve its financial performance.
– Phoenix Motor Inc ($NASDAQ:PEV)
Phoenix Motor Inc is an automotive company based in the United States. The company designs and manufactures cars, trucks, and other motor vehicles. As of 2023, Phoenix Motor Inc has a market capitalization of 21.71M, which indicates its current market value. The company’s Return on Equity (ROE) is -56.7%, indicating that the company is not able to generate profits from its investments and shareholders’ funds. This means that the company is not able to maximize shareholder wealth efficiently. As a result, the company is likely not generating enough returns to be attractive to investors.
Summary
Investors were disappointed in LIVEWIRE GROUP‘s second quarter financial results for FY2023, ending July 27 2023, as total revenue decreased by 50.7% compared to the same quarter of the previous year. Net income was reported at USD -40.7 million, showing a significant decline from -19.8 million in the same period of the prior year. Unsurprisingly, the stock price reacted accordingly on the same day and moved down. Given this financial performance, analysts are bearish on the stock and investors are advised to exercise caution when considering LIVEWIRE GROUP as a potential investment opportunity.
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