Shares of Workhorse Group Inc. WKHS,
rose 4.7% during afternoon trading on Monday, after the 50.9% they took last week, after the electric vehicle maker reported a surprising fourth-quarter net profit while sales exceeded expectations. The company reported net income that increased from $ 655,000 a year ago to $ 280.5 million, compared to FactSet’s consensus for a net loss of $ 15.1 million. The company has not provided results per share. Sales rose from $ 3,000 to $ 652,000, citing a higher number of trucks produced and delivered, but missed the FactSet consensus of $ 1.2 million. “We are entering the new year in our strongest position yet, both financially and operationally,” said Chief Executive Duane Hughes. “With more than $ 200 million in cash on our balance sheet, we are well capitalized to expand our production throughput, and with more than 8,000 vehicles in our order book, we now have the order book to reliably build on our multi-year growth plan.” The stock’s sell-off last week was highlighted by Tuesday’s 47.5% drop after investors were disappointed that the US Postal Service had awarded a van contract only to Oshkosh Corp. OSK,
while Workhorse was generally expected to land at least part of the contract. The stock, which reversed an earlier intraday loss of a whopping 5.6%, has still lost 32.9% in the past three months, while the S&P 500 SPX,
has won 6.5%.