Shares of Chinese EV maker Li Auto Inc. (LI) are up about 5% during pre-market trading today, after the company delivered better-than-anticipated first-quarter numbers on both its top-line and bottom-line fronts.
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Revenue jumped 167.5% year-over-year to $1.51 billion, beating estimates of $1.44 billion. Similarly, earnings per share (EPS) of $0.07 came in ahead of consensus by $0.17.
The company delivered 31,716 vehicles compared to 12,579 vehicles for the comparable year-ago period. Sequentially though, this was a decrease from the 35,221 deliveries made in the fourth quarter. At the end of April, the company had 225 retail stores across 106 cities, along with 292 service centers and authorized body and paint shops across 211 cities.
Notably, Li’s gross profit jumped 250.9% year-over-year to $341.3 million.
Management Weighs In
The Founder, Chairman, and CEO of Li Auto, Xiang Li, commented, “While the recent pandemic resurgence and associated supply chain interruptions have been challenging for our industry, and uncertainty remains for the future, we are confident in the resilience of our organization.”
Li added, “Despite recent pandemic-related bumps on the road, we are forging ahead with our plan to commence the deliveries of our second model, the L9, in the third quarter.”
Looking ahead, for the second quarter of fiscal 2022, the company expects to generate revenue in the range of $972.3 million to $1.11 billion. This range indicates year-over-year revenue growth of between 22.3% and 39.8% for the period.
Analyst’s Take
US Tiger Securities analyst Bo Pei has reiterated a Buy rating on the stock alongside a price target of $40. Overall, the Street has a Strong Buy Consensus rating on Li Auto based on six unanimous Buys.
The average Li Auto price target of $41.87 implies a massive 121.53% potential upside. That’s after a 41.6% slide in the share price so far this year.
Investor Sentiment Remains Buoyant
TipRanks data indicates investor sentiment remains very positive about Li Auto. The number of portfolios holding Li Auto has increased by 10.1% in the past 30 days alone.
Closing Note
Despite a challenging market environment due to COVID-19 induced lockdowns and supply chain constraints, Li Auto has delivered a robust set of numbers. How the market reacts to Li Auto’s upcoming L9 model will be a key point to keep an eye on.
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