XPeng’s second-quarter loss was wider than Wall Street projections.
Courtesy of Xpeng
Chinese electric-vehicle maker XPeng reported a second-quarter loss wider than Wall Street estimates. Guidance for third-quarter sales and deliveries also trailed analysts’ projections, and the stock was falling as investors ponder the state of EV demand in China.
XPeng (ticker: XPEV) reported a second-quarter loss of about $368 million from $1.1 billion in sales. Gross profit margin came in at 10.9%. Wall Street was looking for a loss of about $288 million from sales of $1.1 billion. Analysts projected gross profit margins of 9.6% for the second quarter.
American depositary receipts of XPeng were down 3.3% in premarket trading Tuesday. S&P 500 and Dow Jones Industrial Average futures were both up about 0.2%.
Results might also be hitting shares of XPeng’s peers. NIO ( NIO
) was off about 1% in premarket trading. ADRs of Li Auto (LI) fell about 1.2%.
“Our deliveries sustained robust growth momentum in the second quarter despite unprecedented circumstances brought by the resurgence of Covid-19 in certain areas of China,” said CEO He Xiaopeng in the company’s news release.
Vehicle deliveries totaled 34,422 in the quarter, which included April and May numbers that were impacted by Covid. Looking ahead, XPeng expects to deliver about 30,000 vehicles in the third quarter. That’s below the second quarter and well below Wall Street estimates of about 45,000 units.
Sales are expected to total about $1 billion in the third quarter, below analysts’ projections of almost $1.5 billion.
Management hosts a conference call at 8 a.m. Eastern time to discuss results. Investors will want to hear more about how EV demand is shaping up in coming quarters.
XPeng has new products coming designed to boost sales. The company is launching a new SUV in September. XPeng also plans two new models for 2023.
Coming into Tuesday trading, XPeng stock has fallen 58% this year, while the S&P 500 and Nasdaq Composite were off about 13% and 21%, respectively.
Write to Al Root at allen.root@dowjones.com
Source: finance.yahoo.com