Li Auto is gearing up to announce its latest quarterly earnings on Thursday, October 31, 2024. This briefing is crucial for investors eager to gain insight into the company's performance and future guidance. Analysts project an earnings per share (EPS) of $0.33, highlighting substantial interest in whether Li Auto can exceed expectations, as previous guidance often sways market reactions more than earnings results alone.
Looking back at Li Auto's recent performances, the company surpassed its EPS by $0.01 last quarter, triggering a 10.62% rise in share prices the following day. Examining past quarters provides a snapshot of the company's financial trajectory: In Q2 2024, the EPS was estimated at $0.19, achieving an actual EPS of $0.20, resulting in an 11.0% market uptick. Conversely, Q1 2024 saw a dip with an estimated EPS of $0.35, but actual figures fell short at $0.17, leading to a 3.0% decline in share value.
Analysts perceive Li Auto's current standing as Neutral, with an average one-year price target of $27.62, hinting at a potential 2.81% downside. This assessment places Li Auto in a comparative market analysis alongside peers such as Rivian Automotive. Rivian is also tagged with a Neutral rating, although they face a steeper projected drop of 41.45%, with a one-year target of $16.64.
Peering into peer performance metrics uncovers Li Auto's positioning within the industry. While Ford Motor reports neutral sentiment with revenue growth at 6.35% and a gross profit of $4.56B, Rivian presents lower growth figures with a negative gross profit, emphasizing the industry's competitive landscape. Li Auto's revenue growth marks 10.56% for the period ending June 2024, underscoring its potential despite trailing behind sector averages.
Li Auto features prominently in the new energy vehicle sector as a leading NEV manufacturer deeply rooted in innovation. Its inaugural model, the Li One, a premium six-seater electric SUV, has sold impressively since it commenced production in November 2019. By 2023, Li Auto captured a 4% share of China's burgeoning passenger NEV market, with sales exceeding 376,000 vehicles. Their expanding portfolio now includes BEVs and PHEVs, broadening their market outreach.
Financially, Li Auto presents an intriguing case. Despite being below industry average in market capitalization, the company benefits from significant net margin achievements at 3.48%, indicative of robust cost management. However, Li Auto faces challenges with ROE, signaling room for improvement in capital efficiency. In contrast, the company's ROA of 0.75% surmounts industry norms, reflecting adept asset utilization. Furthermore, their debt-to-equity ratio of 0.25 underscores robust financial health, providing a stable grounding against industry evaluations. Investors keen on following further earnings releases from Li Auto can check updates on their earnings calendar, offering continual insights into the company’s evolving fiscal dynamics.
