Li Auto Q3 Earnings: 24% Topline Growth, 1 Million Deliveries Milestone, Q4 Revenue Outlook Lags Street View

Li Auto Inc LI reported fiscal third-quarter 2024 revenue growth of 23.6% year-on-year to $6.11 billion, topping the analyst consensus of $5.84 billion. 

It clocked an adjusted net earnings per ADS of $0.52, which beat the analyst consensus of $0.42. The stock price fell after the print.

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Vehicle sales increased 22.9% to $5.9 billion due to increased vehicle deliveries. Total vehicle deliveries were 152,831 units in the quarter, a 45.4% year-over-year increase.

The vehicle margin declined by 30 bps year over year to 20.9%, and the gross margin decreased by 50 bps year over year to 21.5%. 

Adjusted income from operations was $636.0 million, up by 49.1% Y/Y. Adjusted net income increased 11.1% Y/Y to $548.8 million.

Li Auto held cash and equivalents of $15.2 billion as of September 30, 2024, and generated $1.60 billion in operating cash flow for the quarter. Free cash flow was $1.30 billion.

As of September 30, 2024, the company had 479 retail stores covering 145 cities, 436 servicing centers, Li Auto-authorized body and paint shops operating in 221 cities, and 894 supercharging stations with 4,286 charging stalls.

On October 18, 2024, Li Auto hit the one million cumulative vehicle deliveries milestone, just 58 months after delivering its first vehicle in December 2019.

Outlook: Li Auto expects fourth-quarter revenue of $6.2 billion—$6.5 billion, representing an increase of 3.5%–10.0% year over year versus analyst consensus of $6.76 billion.

LI expects fourth-quarter vehicle deliveries of 160,000—170,000, representing an increase of 21.4%–29.0% year over year.

Li Auto stock plunged 23% year-to-date as it battled a weak domestic economy and international protectionist tariffs partially offset by China’s stimulus measures.

Price Action: LI stock is down by 6.01% at $27.20 in premarket at the last check on Thursday.

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