Outlook will be key. A Deutsche Bank analyst said May 5 that he expects Li Auto to deliver mixed Q1 results but a strong delivery outlook for the current second quarter.
Li specializes in premium hybrid-electric vehicles. It is starting to shift toward all-electric or battery-electric vehicles, catching up with Nio (NIO). The startup is starting to outstrip Nio as a lead rival to Tesla (TSLA) in China.
Li Auto Earnings
Estimates: Analysts polled by FactSet expect Li Auto earnings of five cents per share, down 25.5% from seven cents a year ago. Revenue is seen almost doubling, year over year, increasing 92% to $2.731 million.
Li has already disclosed that Q1 sales came in at 52,584 EVs, easily outpacing Nio sales, though at the lower end of its own forecast for 52,000-55,000 vehicles.
Results: Check back Wednesday before the market open.
LI Stock Eyes Early Entry
U.S.-listed shares of Li Auto edged up 0.1% to 24.77 on the stock market today, extending a recent rally above the 50-day moving average.
LI stock could offer an early entry if it tops the April 17 high of 26.27. It’s rallying again after a recent breakout from a double-bottom buy point failed.
Other China EV Stocks
Li sold a record 25,000 cars in April, led by the popular new L7 SUV, a Model Y rival.
Shares of Nio, XPeng and Tesla all fell Tuesday. All are below their 200-day lines, with only XPEV stock above its 50-day. Chinese EV giant BYD (BYDDF), which trades over the counter in the U.S., edged lower. BYD stock is flirting with a cup-with-handle buy point.
Year to date, Li Auto stock flourishes a 21.4% gain. That compares with a 1.5% gain for XPeng and a 16.3% decline for Nio stock.
Rival XPeng is set to report May 24. Nio has not announced a date.
‘Clear Favorite’ Startup
Li Auto continues to be one of the best-performing China EV stocks this year. Unlike many EV startups, Li Auto is profitable, though it has an inconsistent history of quarterly profits thus far.
The company has benefited from strong execution, including the ramp of new models in the premium SUV segment, analysts say.
In a May 5 note to clients, Deutsche Bank analyst Edison Yu said he expects a somewhat mixed Q1 because Li’s deliveries came in at the lower end of its own original outlook.
At the same time, Yu anticipates a “robust” Q2 delivery outlook. He cited the popularity of the new Li L7 SUV in part.
Among the startups, he calls LI stock the “clear favorite” that has shifted to higher gear.
YOU MAY ALSO LIKE: