Li Auto Report Second Quarter 2022. Shares Slump on Weak Q3 Outlook

On August 15, 2022, Li Auto released its Q2 2022 financial report. Shares fell 8% due to weak Q3 guidance.

In early trading on August 15, Li Auto shares fell nearly 8% to $29.91. However, by the end of the trading session, the shares rose to $32.56.

Li Auto releases Q2 2022 report

• EPS (earnings per share) = -0.02 (forecast -0.04)
  Revenue = 1.3B (forecast 1.19B) +73.3% Y/Y
• – Li ONE vehicle shipments in the second quarter of 2022 were 28,687 vehicles, up 63.2% from last year.

Consider the Li Auto (Li) report for the second quarter of 2022. In the 2nd quarter, the company managed to increase revenue by 73% (up to 8.73 billion yuan). Deliveries during the reporting period amounted to 28,687 Li ONE vehicles. Growth in car deliveries increased by 63% compared to the same period last year.

Shares of Li Auto (Li) declined after the company issued a weak guidance for Q3 2022. The forecast turned out to be lower than analysts’ expectations, which led to a decrease in shares immediately by 8%. However, then the shares corrected to $32.56. The company forecasts Q3 2022 deliveries to be between 27,000 and 29,000 vehicles, with analysts expecting 39,000 vehicles. The company expects revenue of 8.96 billion to 9.56 billion yuan in the 3rd quarter of 2022, lower than analysts’ forecasts of 14 billion yuan.

Analysts Citigroup, UBS and China Renaissance have assigned a Buy rating to Li Auto (Li). Analysts at Morgan Stanley and Barclays have rated the stock “Overweight”. The average target price for the next 12 months is $45. Possible upside potential is around 40% from current levels.