Lordstown Motors Corp. (RIDE), an automotive company, has declined 10.30% in aftermarket trading session and consequently is trading at $6.18 at the time of the writing. The decline could be attributed to the profit-taking factor after RIDE stock surged 23.92% on Thursday and closed the day at $6.89. The increase came after the company announced the quarterly results.
Why RIDE Stock Surged?
On Thursday, RIDE released the financial results for the third quarter of the fiscal year 2021, which ended on 30th September 2021. The total operating expenses bore by the company were $99.28 million against $41.99 million for the same period of 2020. The net loss suffered by the company for the period was $95.80 million against $42.49 million for the same period of 2020. The net loss per basic and diluted share for the period was $0.54 against $0.57 for the same period of 2020. The company had cash and cash equivalents of $233.83 million on 30th September 2021.
Alongside financial results, the company also updated its financial outlook. The company said that the capital expenditures are estimated to stand between $330 million and $350 million for the full year 2021 a decrease from earlier estimates of $375 million to $400 million. The full-year 2021 estimate for Selling, General, and Administrative expenses, between $105 million and $120 million, has remained unchanged. Similarly for Research and Development expenses, the full year 2021 estimates of $320 million to $340 million have also remained unchanged.
Dan Ninivaggi, Chief Executive Officer of RIDE, while commenting on the results said that the quarter marked a significant shift for the company, as its business expansion plans through entering into partnerships have provided it with numerous dividends. He stressed that the company is well placed to achieve monumental results in upcoming quarters.
What’s Ahead for RIDE stock?
RIDE stock has increased more than 30% during the last month, the prime reason for that being the positive sentiments associated with the stock, as elaborated by the CEO of the company. Analysts suggest that Lordstown Motors is well-positioned to bring further improvements in its performance standards during upcoming quarters.