Xpeng Earnings: Wall Street Expects Rising Deliveries, Reduced Losses
Xpeng Inc. (XPEV), a prominent Chinese electric vehicle (EV) manufacturer, is preparing for its upcoming earnings report. The company is demonstrating significant growth, with its stock price surging by over 110% this year. This exceptional rise sets high expectations for revenue, margins, and earnings per share (EPS).
Xpeng’s Recent Performance Highlights
Xpeng has achieved noteworthy milestones in the last quarter, bolstering optimistic projections. The company reported deliveries of 103,181 units, marking a 242% increase year-over-year. Revenue for this period reached RMB 18.27 billion, while gross margins improved to 17.3%. Free cash flow exceeded RMB 2 billion, contributing to total cash reserves of over RMB 47.5 billion.
- Deliveries: 103,181 units (242% YoY increase)
- Revenue: RMB 18.27 billion
- Gross Margin: 17.3%
- Free Cash Flow: exceeds RMB 2 billion
- Total Cash: above RMB 47.5 billion
Furthermore, Xpeng’s new models are witnessing robust demand. The G7, equipped with the proprietary Turing AI chip, has emerged as a bestseller. In addition, strong pre-sale orders for the P7 indicate promising sales momentum.
Wall Street’s Expectations
As Xpeng approaches its earnings date on November 17, analysts project an EPS of negative $0.05 for the forthcoming quarter. This is a substantial improvement compared to negative $0.27 from the same quarter last year. Although this suggests a trajectory toward smaller losses, experts are closely monitoring cost trends. The company previously reported a net loss of RMB 0.48 billion, which was better than the prior year’s performance but still impacted by increased research, development, and sales expenses.
Despite price pressures in the EV market, analysts maintain a moderate buy rating for Xpeng. They remain optimistic yet cautious about the company’s financial trajectory.
Future Projections and Guidance
Xpeng has forecasted deliveries of between 113,000 and 118,000 units for the next quarter, alongside revenue expectations ranging from RMB 19.6 billion to RMB 21 billion. If the company meets these targets, it is likely that Wall Street will sustain its favorable outlook.
As Xpeng moves forward, its focus on increasing unit growth, managing margins, and controlling costs will be crucial. The company’s performance is under close scrutiny from investors, who are eager to see if it can capitalize on its current momentum.
Is Xpeng a Viable Investment?
Currently, Xpeng Inc. holds a Moderate Buy consensus rating, with an average stock price target of $28.27. This projection indicates a potential upside of 13.03% from the current price levels. Investors are keenly observing XPEV as the company prepares for its earnings release.
