Oklo Heads Into Earnings With Stock A Major Outperformer – What To Expect

Oklo Inc. (NYSE: OKLO), a name increasingly synonymous with advanced nuclear technology, is gearing up to release its latest earnings report. The company, backed by figures like Sam Altman, is navigating a complex landscape of regulatory hurdles, technological innovation, and escalating market demand for clean energy solutions.

The upcoming earnings release follows a year marked by significant activity, with Oklo's stock having gained 237% YTD leading in, and a staggering 900%+ gain in the past 12 months. As a pre-revenue company, there is no revenue line to look for, yet the EPS loss is expected to have narrowed significantly.

Markets are looking for an 11cents EPS loss, against the $5.17 per share lost in the same period last year. Losses have narrowed in previous periods also, with the most recent quarter coming in at -7 cents, a beat on the 10 cents loss expected.

With markets have rallied behind the stock in recent months, CEO Jacob DeWitte's commentary on the growing recognition of nuclear energy's importance resonates with broader sentiment, highlighting a shift towards embracing nuclear power as a key component of future energy grids.

The reported partnerships with data center providers, targeting a potential delivery of up to 750 MW, and a total customer pipeline nearing 2,100 MW, signal a tangible demand for Oklo's advanced reactor technology.

A pivotal move in Oklo's growth strategy was the acquisition of Atomic Alchemy. This strategic integration allows Oklo to tap into the burgeoning radioisotope market, projected to exceed $55 billion by 2026.

Beyond the immediate revenue potential, the acquisition enhances Oklo's fuel recycling process, generating valuable radioisotopes as co-products. This diversification not only strengthens the company's financial resilience but also positions it as a leader in sustainable nuclear fuel management.

Analyst sentiment has been largely positive, contributing to Oklo's notable stock performance. Citigroup, for example, maintained a Neutral rating but significantly raised its price target from $30 to $68, a testament to growing confidence in Oklo's prospects.

Looking ahead, Oklo's regulatory progress is a critical factor. The company is actively pursuing licensing for its Aurora powerhouse at the Idaho National Laboratory, with plans to submit its combined license application to the U.S. Nuclear Regulatory Commission in the first half of 2025.

The ambitious goal of commencing reactor operations by late 2027 underscores Oklo's commitment to pioneering advanced nuclear technology deployment. Success in this endeavor would solidify Oklo's position as a frontrunner in the race to provide clean, reliable, and scalable energy solutions.

While the market buzzes with excitement, the path to profitability for Oklo remains uncertain. The advanced reactor technology, while promising, is still unproven at scale. The regulatory landscape is complex and unpredictable, and delays in licensing could significantly impact the company's timeline and financial projections.

Moreover, the nuclear energy sector is capital-intensive, and Oklo's ability to secure additional funding in the future will be crucial for its long-term success. The current valuation, driven largely by future potential, may not fully reflect the inherent risks associated with bringing a novel technology to market.

The implied move today is ~10%, indicating that markets are prepared for a wave of volatility as the print, and perhaps more importantly, the commentary regarding outlook are digested. With earnings up after the closing bell, we will find out before long how the street treats the print.