Li Auto Inc. Earnings Report Preview: Key Financials and Legal Challenges Ahead
- Li Auto Inc. is set to release its earnings report on May 20, 2024, with an expected EPS of $0.35 and revenue estimates around $3.85 billion.
- The company faces a securities class action lawsuit, adding a layer of investor scrutiny ahead of the earnings announcement.
- Financial metrics reveal a mixed picture, with a P/E ratio of 16.35 and a P/S ratio of 1.42, indicating moderate investor expectations and valuation concerns.
On Monday, May 20, 2024, before the market opens, NASDAQ:LI is scheduled to release their earnings report for the quarter. Wall Street estimates suggest earnings per share (EPS) of $0.35. The revenue for the period is estimated to be approximately $3.85 billion. This upcoming earnings report is particularly significant for Li Auto Inc., a company that has made its mark in the electric vehicle (EV) industry by focusing on smart, energy-efficient automobiles. As competition in the EV market intensifies, with major players like Tesla and NIO, the performance of LI in this quarter is crucial for maintaining its position and investor confidence.
Li Auto Inc. is currently navigating through challenging waters as it faces a securities class action lawsuit, as announced by the law firm Kessler Topaz Meltzer & Check, LLP. This lawsuit, filed in the United States District Court for the Eastern District of New York, alleges violations of federal securities laws through omissions and fraudulent misrepresentations related to the company's business operations and prospects. This legal challenge comes at a time when investor scrutiny is high and the financial health of the company, as indicated by its upcoming earnings report, is under the spotlight.
The financial metrics of Li Auto provide a mixed picture of the company's current standing. With a price-to-earnings (P/E) ratio of approximately 16.35, investors seem to have a moderate expectation of the company's future earnings growth. This is complemented by a price-to-sales (P/S) ratio of about 1.42, suggesting that the market values each dollar of LI's sales at a premium. However, the enterprise value to sales (EV/Sales) ratio of roughly 0.80 indicates that the market values the company at less than its sales value, which could be a point of concern for investors looking at the company's growth prospects.
Moreover, the enterprise value to operating cash flow (EV/OCF) ratio is significantly high at approximately 1942.43, highlighting the company's valuation in relation to its operating cash flow. This could indicate that the market expects future growth or it could signal overvaluation, depending on the perspective of the investor. The earnings yield of about 6.12% offers an insight into profitability from an investor's perspective, suggesting a reasonable return on investment. The debt-to-equity (D/E) ratio of around 0.23 shows a moderate level of debt relative to equity, indicating that the company is not overly leveraged. Lastly, the current ratio of approximately 1.57 suggests that LI is capable of covering its short-term liabilities with its short-term assets, which is a positive sign for liquidity.
As Li Auto Inc. prepares to release its quarterly earnings report, investors and analysts will be keenly watching how these financial metrics translate into actual performance, especially in light of the ongoing legal challenges. The outcome of this earnings report could significantly influence investor sentiment and the company's market position amidst the competitive and rapidly evolving electric vehicle industry.
| Symbol | Price | %chg |
|---|---|---|
| 005389.KS | 212500 | -0.94 |
| 005385.KS | 213000 | -1.88 |
| 005387.KS | 216500 | -1.62 |
| 005380.KS | 291500 | 0.51 |
Li Auto Inc. (NASDAQ:LI) Earnings Report Highlights
- Li Auto reported earnings per share of $0.33, surpassing the estimated $0.16.
- The company's revenue was $3.53 billion, below the expected $4.83 billion.
- Li Auto delivered 92,864 vehicles in the first quarter, exceeding analysts' forecasts.
Li Auto Inc. (NASDAQ:LI) is a leading Chinese electric vehicle manufacturer known for its innovative approach to the EV market. The company focuses on producing smart electric SUVs and has been gaining traction in the competitive Chinese EV landscape. Li Auto competes with other major players like NIO and XPeng, striving to capture a significant share of the growing EV market.
On May 29, 2025, Li Auto reported earnings per share of $0.33, exceeding the estimated $0.16. However, the company generated revenue of approximately $3.53 billion, falling short of the expected $4.83 billion. This discrepancy highlights the challenges Li Auto faces in meeting revenue expectations despite strong earnings performance.
Li Auto's U.S.-listed shares experienced a decline in premarket trading after the company reported first-quarter profits and projections that did not meet analysts' expectations. The company announced adjusted earnings per American depositary share of 0.96 yuan, equivalent to $0.13, on a revenue of 25.93 billion yuan, or $3.61 billion. Analysts had anticipated earnings of 1.03 yuan and revenue of 25.28 billion yuan.
Despite the earnings miss, Li Auto delivered 92,864 vehicles in the first quarter, surpassing the analysts' forecast of 91,723 units. CFO Tie Li emphasized the company's ability to navigate dynamic market conditions while maintaining strong profitability. Looking ahead, Li Auto expects to deliver between 123,000 and 128,000 vehicles in the second quarter, with revenue projections between 32.5 billion yuan and 33.8 billion yuan, both below Visible Alpha's forecasts.
Li Auto's financial metrics provide insight into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 13.77, indicating how the market values its earnings. Its price-to-sales ratio stands at about 0.72, suggesting a relatively low valuation compared to its sales. The enterprise value to sales ratio is around 0.38, reflecting the company's total valuation in relation to its revenue.
Li Auto Inc. (NASDAQ:LI) - A Beacon in China's Electric Vehicle Market
- Stable Analyst Consensus: The consensus price target for Li Auto Inc. (NASDAQ:LI) has increased modestly, indicating a positive outlook on the company's growth prospects.
- Recent Delivery Dip: A seasonal effect led to a 12% decrease in vehicle deliveries in February, but the outlook remains positive with expectations of stabilization.
- Strong Market Position: Despite recent delivery challenges, Li Auto's profitability, competitive pricing, and superior vehicle margins keep it in a strong position within the electric vehicle sector.
Li Auto Inc. (NASDAQ:LI) is a key player in China's energy vehicle market, specializing in premium smart electric vehicles. The company designs, develops, manufactures, and sells a variety of vehicles, including MPVs and SUVs. Li Auto also offers sales, after-sales management, technology development, and corporate management services. Their products are distributed through both online and offline channels, making them accessible to a wide range of consumers.
The consensus price target for Li Auto has shown a modest increase over the past year. Last month and last quarter, the average consensus price target was $38.5, reflecting a stable outlook from analysts. This stability suggests confidence in Li Auto's performance and potential. The increase from last year's target of $35.92 indicates a positive sentiment towards the company's growth prospects in the electric vehicle sector.
In February, Li Auto faced a decline in delivery results, with only 26,263 electric vehicles delivered, a 12% decrease from the previous month. This drop is attributed to seasonal effects, which are expected to stabilize in March. Despite this setback, Li Auto maintains a strong buy rating due to its profitability, competitive price-to-revenue ratio, and superior vehicle margins compared to competitors like NIO and XPeng.
Analyst Tim Hsiao from Morgan Stanley has set a price target of $49 for Li Auto, highlighting the company's strong market position. Investors should consider factors such as earnings reports, market trends, and company announcements, as these can influence price targets. Keeping an eye on these elements will help investors understand potential movements in Li Auto's stock price.
Li Auto Inc. (NASDAQ:LI) - A Beacon in China's Electric Vehicle Market
- Stable Analyst Consensus: The consensus price target for Li Auto Inc. (NASDAQ:LI) has increased modestly, indicating a positive outlook on the company's growth prospects.
- Recent Delivery Dip: A seasonal effect led to a 12% decrease in vehicle deliveries in February, but the outlook remains positive with expectations of stabilization.
- Strong Market Position: Despite recent delivery challenges, Li Auto's profitability, competitive pricing, and superior vehicle margins keep it in a strong position within the electric vehicle sector.
Li Auto Inc. (NASDAQ:LI) is a key player in China's energy vehicle market, specializing in premium smart electric vehicles. The company designs, develops, manufactures, and sells a variety of vehicles, including MPVs and SUVs. Li Auto also offers sales, after-sales management, technology development, and corporate management services. Their products are distributed through both online and offline channels, making them accessible to a wide range of consumers.
The consensus price target for Li Auto has shown a modest increase over the past year. Last month and last quarter, the average consensus price target was $38.5, reflecting a stable outlook from analysts. This stability suggests confidence in Li Auto's performance and potential. The increase from last year's target of $35.92 indicates a positive sentiment towards the company's growth prospects in the electric vehicle sector.
In February, Li Auto faced a decline in delivery results, with only 26,263 electric vehicles delivered, a 12% decrease from the previous month. This drop is attributed to seasonal effects, which are expected to stabilize in March. Despite this setback, Li Auto maintains a strong buy rating due to its profitability, competitive price-to-revenue ratio, and superior vehicle margins compared to competitors like NIO and XPeng.
Analyst Tim Hsiao from Morgan Stanley has set a price target of $49 for Li Auto, highlighting the company's strong market position. Investors should consider factors such as earnings reports, market trends, and company announcements, as these can influence price targets. Keeping an eye on these elements will help investors understand potential movements in Li Auto's stock price.
Li Auto Shares Drop 8% Following Delivery Guidance Cut
Li Auto (NASDAQ:LI) shares saw a downturn of over 8% in pre-market today following the company's revised guidance for its Q1 vehicle deliveries. The electric carmaker adjusted its delivery expectations to between 76,000 and 78,000 vehicles, a significant decrease from its previously estimated range of 100,000 to 103,000 units.
This new forecast notably falls short of the analyst predictions, which were around 107,834 vehicles. CEO Xiang Li commented on the challenges faced in March, explaining that the company's operational approach to its Li MEGA model was too ambitious, treating it as if it were in a more advanced phase of scaling than it actually was.
Citi Expresses Optimism on Li Auto Shares
Citi initiated a "30-day positive catalyst watch” on Li Auto (NASDAQ:LI) while maintaining a Buy rating and a $54.30 price target on the shares.
The bank is optimistic about LI's recent strong shipment and potential sector recovery into July 2023. It highlighted four key potentially positive catalysts to watch over the next 30 days: positive insurance numbers, signs of broader sector recovery, improvements in margins and cash flow, and new product launches.
Citi expects further shipment acceleration, continued sector growth, increased margins and cash flow, and the introduction of both BEV and EREV versions of MPVs by Li Auto.
Citi Expresses Optimism on Li Auto Shares
Citi initiated a "30-day positive catalyst watch” on Li Auto (NASDAQ:LI) while maintaining a Buy rating and a $54.30 price target on the shares.
The bank is optimistic about LI's recent strong shipment and potential sector recovery into July 2023. It highlighted four key potentially positive catalysts to watch over the next 30 days: positive insurance numbers, signs of broader sector recovery, improvements in margins and cash flow, and new product launches.
Citi expects further shipment acceleration, continued sector growth, increased margins and cash flow, and the introduction of both BEV and EREV versions of MPVs by Li Auto.
