A Look Ahead: Li Auto's Earnings Forecast

Li Auto LI is set to give its latest quarterly earnings report on Thursday, 2024-10-31. Here's what investors need to know before the announcement.

Analysts estimate that Li Auto will report an earnings per share (EPS) of $0.33.

Anticipation surrounds Li Auto's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Overview of Past Earnings

Last quarter the company beat EPS by $0.01, which was followed by a 10.62% increase in the share price the next day.

Here's a look at Li Auto's past performance and the resulting price change:

Analysts' Perspectives on Li Auto

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Li Auto.

Li Auto has received a total of 5 ratings from analysts, with the consensus rating as Neutral. With an average one-year price target of $27.62, the consensus suggests a potential 2.81% downside.

Understanding Analyst Ratings Among Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of and Rivian Automotive, three key industry players, offering insights into their relative performance expectations and market positioning.

• The consensus among analysts is an Neutral trajectory for Rivian Automotive, with an average 1-year price target of $16.64, indicating a potential 41.45% downside.

Key Findings: Peer Analysis Summary

Within the peer analysis summary, vital metrics for and Rivian Automotive are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Li Auto is positioned in the middle among its peers for revenue growth, with one company showing higher growth and the other lower. In terms of gross profit, Li Auto is ahead of one peer but behind the other. For return on equity, Li Auto is performing better than one peer but worse than the other.

Unveiling the Story Behind Li Auto

Li Auto is a leading Chinese NEV manufacturer that designs, develops, manufactures, and sells premium smart NEVs. The company started volume production of its first model Li One in November 2019. The model is a six-seater, large, premium plug-in electric SUV equipped with a range extension system and advanced smart vehicle solutions. It sold over 376,000 NEVs in 2023, accounting for about 4% of China's passenger new energy vehicle market. Beyond Li One, the company expands its product line, including both BEVs and PHEVs, to target a broader consumer base.

Unraveling the Financial Story of Li Auto

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Li Auto's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 10.56%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: Li Auto's net margin is impressive, surpassing industry averages. With a net margin of 3.48%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Li Auto's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 1.77%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Li Auto's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.75% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Li Auto's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.25.

To track all earnings releases for Li Auto visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.