EPS Beat, 25% Increase in Deliveries, Margin Battles and more

Li Auto Inc (NASDAQ:LI) reported fiscal 2Q24 revenue growth of 10.6% year-over-year to $4.36 billion, narrowly missing analysts’ consensus estimates of $4.45 billion.

It posted adjusted net earnings per ADS of $0.20, which beat the analyst consensus of $0.19.

Vehicle sales rose 8.4% to $4.2 billion, mainly due to higher vehicle deliveries. Total vehicle deliveries were 108,581 units in the quarter, up 25.5% year-on-year.

Vehicle margin declined 230bps year-over-year to 21.0%, primarily due to changes in product mix and pricing strategy. Gross margin decreased 230 bps year-over-year to 21.8%, primarily due to reduced vehicle margin.

Adjusted operating income was $119.7 million, down 57.4% y/y. Adjusted net income fell 44.9% y/y to $206.8 million.

Li Auto had cash and equivalents of $13.4 billion as of June 30, 2024, and used $59.1 million in operating cash flow for the quarter.

As of June 30, 2024, the company had 497 retail stores covering 148 cities, 421 Li Auto authorized service centers, body shops and paint shops operating in 220 cities and 614 supercharging stations with 2,726 charging stands .

In July 2024, the company delivered 51,000 vehicles, which is a 49.4% increase from April 2023.

Chairman and CEO Mr. Xiang Lil said: “In June 2024, we passed the 800,000 vehicle mark in cumulative deliveries, making history for China’s premium automobile brands. In addition to our strong sales results, we have made substantial progress in autonomous driving. July, we launched our high-definition, map-independent NOA with nationwide coverage to over 240,000 Li AD Max users and launched our next-generation self-driving technology architecture that integrates an E2E model and a VLM .”

Outlook: Li Auto expects third-quarter revenue of $5.4 billion—$5.8 billion, up 13.7%—21.6% from the analyst consensus of $5.74 billion.

LI expects third quarter vehicle deliveries of 145,000 – 155,000, up 38.0%–47.5% year-over-year.

Li Auto’s stock has fallen 47% over the past 12 months as China’s electric vehicle industry has struggled with weak domestic demand and protectionist tariffs.

Price action: Shares of LI traded down 0.80% at $21.39 in premarket trading last checked on Wednesday.

Image via Shutterstock

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This article Chinese EV Maker Li Auto T2 Revenue: EPS Beat, 25% Shipments Rise, Margin Struggles and More originally appeared on Benzinga.com

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