Li Auto Inc. (NYSE: LI) has confirmed the release date for its Q4 and full-year 2021 results which is on Friday, February 25, 2022, before markets open.
What to look for: The company designs, develops and manufactures smart electric SUVs with the latest tech. Besides its current hybrid-electric Li-One SUV, the company will unveil another model in Q2 2022, with deliveries scheduled in Q3 2022. When the company released its Q3 results in November, it indicated that it expected more deliveries for the quarter under review with 30,000 to 32,000 deliveries to power revenue growth. In addition, the strategic launch of distribution centers bolsters production growth at the company, and the company anticipates having 200 retail stores at the end of the year in over 100 cities.
Earnings: Stockearning’s Estimated EPS of $0.2 per share compared to $0.13 a year ago. In the third quarter, the company reported EPS of $0.01, topping consensus estimates of $0.1 per share. For the full fiscal year, analysts expect the company to post EPS of 0. Historical EPS Performance shows that the company has in the past 12 quarters topped estimates twice (40%) and missed estimates once (20%).
Revenue: Management guided in November that they expect revenue of between $1.37 billion and $1.46 billion, suggesting an increase of between 112.7% and 127%. The company had revenue of $7.78 billion, beating analysts expectation of $7.23 billion.
Stock movement: Li Auto shares have lost 11.9% since the company released its Q3 2021 earnings. Interestingly, the company’s shares have been DOWN 3 times out of the past five quarters. So, the historical price reaction suggests a 60% probability of the share price going DOWN following the fiscal Q4 2021 earnings release. According to the Stockearning algorithm, the predicted volatility on the first day is +/-6%, while the predicted volatility on the seventh day is +/-14%.
What analysts are saying: Barclays analyst commenced coverage on Li Auto with a buy rating and price target of $38 on the shares. The analyst also covers other Chinese EV makers and has a Buy rating on Nio and Xpeng Motors with a price target of $34 and $45, respectively. In a research note, Barclays analyst Jiong Shao tells investors that "rapid adoption" of electric cars across the globe and "booming" sales presents China's EVs makers with a "rare opportunity" to take a substantial market share of the domestic automotive market, and also to build a dominant position around the world. According to the analyst, Smar Electric vehicles t cars, and electric vehicles are part of China's top priorities. China is not only the world's largest car market, but it also accounts for nearly one-third of worldwide automotive profit, according to Shao. According to the expert, China's official policy plan for electric vehicles is "one of the most supportive and well-thought-out."
Tiger Securities analyst Bo Pei commenced coverage on Li Auto with a buy rating and a price target of $40. Pei believes extended-range EVs offer an attractive value proposition to buyers, which will help the company to gain significant market share. Also, Macquaries analyst Erica Chen commenced coverage in the stock with a Buy rating and a price target of HK$151.
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