As Quantumscape (QS, Financial) approaches its earnings announcement, the options market has shown an unusual level of activity. The pre-earnings options volume for QS is 1.6 times higher than usual, indicating increased trader interest. Call options are dominating the scene, surpassing puts by a ratio of 11:2.
The market is bracing for a significant price shift in QS, with implied volatility pointing to an anticipated move around 9.6%, or approximately 38 cents, following the earnings release. Historically, the stock has experienced a median move of 7.0% amidst its past eight quarterly earnings reports.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for QuantumScape Corp (QS, Financial) is $5.48 with a high estimate of $8.00 and a low estimate of $2.50. The average target implies an upside of 37.39% from the current price of $3.99. More detailed estimate data can be found on the QuantumScape Corp (QS) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, QuantumScape Corp's (QS, Financial) average brokerage recommendation is currently 3.1, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Key Business Developments
Release Date: February 12, 2025
- Capital Expenditures (CapEx): $11.2 million in Q4 2024; $62.1 million for full year 2024.
- GAAP Operating Expenses: $128.7 million in Q4 2024; $525.2 million for full year 2024.
- GAAP Net Loss: $114.7 million in Q4 2024; $477.9 million for full year 2024.
- Adjusted EBITDA Loss: $64.7 million in Q4 2024; $285 million for full year 2024.
- Liquidity: $910.8 million at the end of 2024.
- 2025 CapEx Forecast: Between $45 million and $75 million.
- 2025 Adjusted EBITDA Loss Forecast: Between $250 million and $280 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- QuantumScape Corp (QS, Financial) achieved its four key goals for 2024, including the shipment of Alpha-2 samples and the ramping of the Raptor separator process.
- The company began low-volume B0 production of QSE-5 cells, which boast industry-leading performance metrics such as high energy density and fast charging capabilities.
- QuantumScape Corp (QS) released its advanced Cobra separator heat treatment equipment, setting the stage for higher volume B1 production in 2025.
- The partnership with PowerCo, Volkswagen Group's battery manufacturing company, is a cornerstone of QuantumScape's commercial licensing strategy.
- QuantumScape Corp (QS) ended 2024 with $910.8 million in liquidity, extending its cash runway into the second half of 2028.
Negative Points
- QuantumScape Corp (QS) reported a GAAP net loss of $114.7 million for Q4 2024 and $477.9 million for the full year. Adjusted EBITDA loss for the fourth quarter of 2024 were $64.7 million.
- The company faces risks and uncertainties that could cause actual results to differ materially from projections.
- QuantumScape Corp (QS) is still in the process of transitioning from Raptor to Cobra, which involves significant operational changes.
- The commercialization of the QSE-5 platform is still in the demonstration phase, with full-scale production targeted for 2026.
- QuantumScape Corp (QS) is operating in a competitive environment with other companies also pursuing solid-state battery technology.
