Shares of Workhorse Group Inc. WKHS, +3.09% bounced 4.7% in midday trading Monday, following the 50.9% drubbing they took last week, after the electric vehicle maker reported a surprise fourth-quarter net profit while sales came up shy of expectations. The company reported net income that rose to $280.5 million from $655,000 a year ago, compared with the FactSet consensus for a net loss of $15.1 million. The company did not provide per-share results. Sales rose to $652,000 from $3,000, citing a higher volume of trucks and produced and delivered, but missed the FactSet consensus of $1.2 million. “We’re entering the new year in our strongest-ever position, both financially and operationally,” said Chief Executive Duane Hughes. “Counting over $200 million of cash on our balance sheet, we are well capitalized to expand our manufacturing throughput, and with over 8,000 vehicles in our backlog, we now have the order book to reliably build for our multi-year growth plan.” The stock’s selloff las week was highlighted by the 47.5% plunge last Tuesday, after investors were disappointed that the U.S. Postal Service awarded a contract for delivery trucks to only Oshkosh Corp. OSK, +4.80%, while Workhorse was widely expected to win at least a part of the contract. The stock, which reversed an earlier intraday loss of as much as 5.6%, has still lost 32.9% over the past three months, while the S&P 500 SPX, +2.31% has gained 6.5%.
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