Li Auto Inc. (NASDAQ: LI) will release its Q2 earnings on August 30, 2021, with the company expected to post a loss of -$0.03 per share.
There is growing concern among Chinese e companies listed in the US as Beijing moves to restrict several US stock exchange-listed companies. However, there will be clarity around the uncertainty when the company discusses its Q2 earnings.
Li delivered 12,500 Li ONE SUVs
In the first quarter, the electric car company delivered around 12,579 Li ONE cars, a 334.4% YOY increase, bringing approximately RNB 3.58 billion, a 319.8% YoY increase. The revenue topped the top end of the company's revenue outlook by 11.2%. In Q1 2021, the company had a non-GAAP net loss of RMB 177 million compared to a net loss of $253.4 million in Q1 2020.
For the second quarter, the company expects to deliver between 14,500 and 15,500 cars, a 119.6% to$134.7% increase from Q2 2020. As a result, Li Auto anticipated Q2 revenue to range from RMB3.99 billion to RMB 4.27 billion, which is a 104.6% to 119 YoY increase.
LI up 46% since last earnings release
Since the last earnings release, the company's shares have gained 46.1%. During the previous three quarters, shares were DOWN in two of the three quarters after the earnings release. According to Stockearning’s algorithm, the predicted first-day move after earnings release is 8%, while movement on the seventh day is 18%.
Stockearning’s Estimated EPS for Q2 2021 is $-0.03. Historical EPS performance shows that in the past 12 quarters, the company has only topped estimates once (33%) and missed estimates once (33%). In the last quarter, the company's EPS was -0.06 versus estimates of -0.07.
Citi Analyst lowers target price on Li Auto shares
Citi analyst Jeff Chung has maintained his Buy rating in the stock but lowered the target price for $48.1 to $42.5. Chung's latest target price factors in share dilution following the listing of Li Auto in Hong Kong. Interestingly the analysts are optimistic that the second primary listing will offer the company additional cash for research and development to offset policy uncertainty resulting from its US listing and also allow Li Auto to tap into institutional investors in mainland China.
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