Li Auto (LI: NSD), a Chinese electric vehicle manufacturer, experienced a surge in its stock price by more than 8% in pre-market trading on November 9, 2023. This was after the company released its Q3 earnings report, which showed an earnings per share (EPS) of $0.45, surpassing the consensus estimate of $0.37 per share made by analysts. Additionally, the company’s revenue for the quarter is $5.4 billion, reflecting a 249.6% YoY increase.
Key Findings from Li Auto’s Q3 Results:
Li Auto’s Q3 results beat analyst expectations on both the top and bottom lines. The company’s EPS of $0.45 was well above the consensus estimate of $0.37 per share. Li Auto’s revenue of RMB38.6 billion was also above the consensus estimate of RMB37.8 billion.
Li Auto’s vehicle deliveries grew rapidly in the third quarter, increasing 296.28% year-over-year to 105,108 vehicles. The company’s flagship Li ONE model remains the company’s top seller, accounting for over 99% of all deliveries in the third quarter.
Li Auto Provides Positive Guidance for Q4:
Li Auto’s strong Q3 results and positive guidance for the fourth quarter are positive indicators for the company’s stock. The company is well-positioned to continue its growth trajectory in the Chinese EV market, which is expected to grow rapidly in the coming years.
Li Auto provided positive guidance for the fourth quarter, expecting to deliver between 40,000 and 45,000 vehicles, representing year-over-year growth of 25% to 35%. The company’s guidance is above the consensus estimate of 39,000 vehicles. The company is also expected to launch new EV models shortly, which could further boost its growth.
Conclusion:
Li Auto’s Q3 earnings results were strong, beating analyst expectations on both the top and bottom lines. The company’s vehicle deliveries continued to grow rapidly, and the company provided positive guidance for the fourth quarter. Analysts were generally positive on Li Auto’s results, maintaining their bullish ratings on the stock.
