LIVEWIRE GROUP Reports Strong Q2 Earnings for FY 2023
August 28, 2023
☀️Earnings Overview
On June 30, 2023, the LIVEWIRE GROUP ($NYSE:LVWR) reported their earnings results for the second quarter of FY 2023. Their total revenue for the quarter was a decreased by 50.7%, amounting to USD 7.0 million, compared to the same quarter of the previous year. Furthermore, the net income for the quarter was reported to be USD -40.7 million, a decrease of -19.8 million year-on-year.
Market Price
On Thursday, LIVEWIRE GROUP reported strong second quarter earnings for fiscal year 2023. This was further amplified by a reduction in operating expenses.
However, the market appeared to be unimpressed with the company’s results, as LIVEWIRE GROUP stock opened at $11.4 and closed at $10.9, representing a 7.6% drop from its prior closing price of 11.8. Despite the share price decline, analysts remain optimistic about the company’s outlook and believe the stock could rebound if they continue to post strong earnings numbers. Investors should also keep an eye out for any future announcements regarding M&A activity as this could provide a boost to the share price. 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
At GoodWhale, we believe that it’s important to analyze the fundamentals of any potential investment before taking the plunge. That’s why we’ve analyzed LIVEWIRE GROUP with our Risk Rating tool. Our analysis concluded that LIVEWIRE GROUP is a low risk investment in terms of financial and business aspects. That being said, GoodWhale has detected 1 risk warning in LIVEWIRE GROUP’s balance sheet. If you’re considering investing in LIVEWIRE GROUP, we recommend that you register on GoodWhale.com and take a closer look at this warning before making a decision. 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
The LIVEWIRE GROUP reported disappointing earnings for the second quarter of FY 2023, with total revenue of USD 7.0 million, representing a 50.7% decrease compared to the same quarter of the previous year. Net income for the quarter was USD -40.7 million, a decrease of -19.8 million from the prior year. As a result, the stock price dropped on the same day. Investors should keep an eye on future earnings results from the LIVEWIRE GROUP to gain further insight on the company’s financial performance and prospects.
Additionally, potential investors should consider other factors such as competitive landscape and management team to assess overall risk and potential returns before investing in this company.
