Electric truck manufacturer Workhorse Group (NASDAQ:WKHS) has been in focus among investors for quite some time for a variety of reasons. However, on Tuesday, the Workhorse stock surged by as much as 10.4% despite there being no material news with regards to the company’s business. In light of the latest rally, it could be a good idea for investors to perhaps take a closer look at Workhorse.
Upcoming Earnings Report
While it is true that there has been no news that could have triggered the strong rally on Tuesday, it should be noted that two important events are coming up for Workhorse.
First of all, the company is all set to announce its financial results for the third quarter on November 9, and analysts have estimated that the losses are going to be $.10 a share. If the company manages to limit losses to that figure it will be a significant improvement on the $0.17 a share loss suffered in the year-ago period.
However, that is not all. The company is expected to provide a key update with regard to the progress that has been made in the production of electric vans. Workhorse is manufacturing those vans in question for Ryder Systems.
While these are potentially important factors that investors are going to keep an eye on, the matter of the potential United States Postal Service contract looms large.
The USPS is expected to award a contract worth $6.3 billion for 180000 delivery trucks to one or more companies and Workhorse is in the running. The announcement is expected to be made by the end of 2020.
HorseFly Drone News
Towards the end of October, there was another major development with regards to Workhorse’s HorseFly Unmanned Aerial System. On October 29, it emerged that Workhorse sent in an application to the Federal Aviation Administration (FAA) for Type Certification of the HorseFly delivery drone.
It is a significant development since if it does get a certification; it would indicate the airworthiness of the HorseFly. The entire certification process is expected to take anything between 12 to 24 months.
No short-seller setback
Last month, a short seller named Fuzzy Panda Research had published a report stating that Workhorse had been misleading investors and went on to state that the company was unlikely to be awarded the USPS contract.
While the Workhorse shares did decline initially following the publication of the report, the stock soon clawed back considerably.
Neither PSN nor its owners, members, officers, directors, partners, consultants, nor anyone involved in the publication of this website, is a registered investment adviser or broker-dealer or associated person with a registered investment adviser or broker-dealer and none of the foregoing make any recommendation that the purchase or sale of securities of any company profiled in the PSN website is suitable or advisable for any person or that an investment or transaction in such securities will be profitable. The information contained in the PSN website is not intended to be, and shall not constitute, an offer to sell nor the solicitation of any offer to buy any security. The information presented in the PSN website is provided for informational purposes only and is not to be treated as advice or a recommendation to make any specific investment. Please consult with an independent investment adviser and qualified investment professional before making an investment decision.