Chinese electric vehicle manufacturer
The first quarter reported numbers that were slightly better than analysts’ expectations The stock, however, was weak on Monday. Gross profit margins and guidance may be about investors.
But one thing investors should keep in mind when looking at consensus numbers to determine what things look and will look like for XPeng: the numbers that make up the US consensus estimate does not reflect most analysts covering the stock.
XPeng (Ticker: XPEV) reported a loss of 28 cents per American depository receipt from $ 1.2 billion in sales. Analysts had expected a loss of 30 cents on the 1.1 billion sale. In the fourth quarter, XPeng reported a consistent loss of 11 cents from nearly $ 1.3 billion in sales.
XPeng’s US-listed stock was down nearly 3.7% at $ 22.41 per share in early trading on Monday.
Dow Jones Industrial Average
Futures both rose about 0.7%.
The company delivered 34,561 vehicles in the first quarter. XPeng delivered 41,751 vehicles in the fourth quarter of 2021. The Chinese Lunar New Year holiday in February is a seasonally weak time. First-quarter sales were also affected by the resurgence of covid in some areas.
Gross profit margin for the first quarter stood at 12.2%. Analysts are projecting 12.7%. Gross profit margin for the fourth quarter was 12%.
Looking ahead, XPeng expects to deliver 31,000 to 34,000 vehicles in the second quarter This means about 12,000 deliveries for May and June. XPeng delivered 9,002 vehicles in April. XPeng’s all-time best month for car deliveries was 16,000 in December 2021.
Second-quarter sales are expected to be around $ 1.1 billion. Wall Street was projected to sell about $ 1.2 billion this quarter. The numbers are a bit light, but sometimes US-listed companies are in a difficult position regarding analysts’ expectations. For example, Factset estimates are made up of only a handful of analysts, and about one-third or more of the 18 that cover the XPeng stock. Most analysts are based in Asia and their numbers are not always sorted by the total number of sites.
Management, on their part, is sounding enthusiastic about the EV trend in China. “The demand for our high-quality EV products has been strong and our technology-led suit industry is leading the way,” said He Xiaoping, CEO of the company in a news release. “Advanced internal technology development capabilities and active supply chain management have enabled us to address supply chain challenges more efficiently. We are confident of expanding our market share despite the shortage of semiconductors and the impact of Covid-19.”
Considering the Covid-19 and some of the headaches that have befallen the stock, the results aren’t so bad. In Monday’s trading, XPeng stocks fell nearly 54% this year, worse than the 18% and 14% losses for the S&P 500 and Dow, respectively.
Investors have sold high-growth stocks amid inflation and rising interest rates. Fear of delisting contributes to 2022 losses. Shares of US-listed foreign companies may be delisted if foreign companies do not meet US auditing standards. Many Chinese companies still do not meet the requirements.
Invesco Golden Dragon China ETF
(PGJ) holds stock in US-listed Chinese companies, including XPeng. In 2022 the ETF decreased by about 28%.
Option markets indicate that the stock will move from 10% to 12%, up or down, after earnings. It will be more volatile than the recent quarter. XPeng stock has moved up or down about 3.5% after the following four quarters. Shares have risen twice and fallen twice in the last four quarters.
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