XPeng's Fourth-Quarter Net Loss Likely Widened Despite Higher Revenue -- Earnings Preview

Dow Jones
03-17
 

By Jiahui Huang

 

XPeng is scheduled to report results for the fourth quarter and full year on Tuesday. Here is what you need to know:

 

NET LOSS: The Chinese electric-vehicle maker is expected to post fourth-quarter net loss of 1.45 billion yuan, equivalent to $200.3 million, according to a poll of analysts by Visible Alpha, widening from 1.35 billion yuan a year earlier. Its annual net loss likely narrowed to 5.81 billion yuan from 10.38 billion yuan in 2023, Visible Alpha data showed.

REVENUE: The company's quarterly revenue is projected at 16.13 billion yuan, according to Visible Alpha, up 24% from a year ago. That would align with its guidance of between 15.3 billion yuan and 16.2 billion yuan. The automaker delivered 91,507 vehicles in the fourth quarter, beating its guided range of 87,000-91,000 units.

XPeng's Hong Kong-listed shares dropped 12% in the fourth quarter but have doubled this year, thanks to its competitive edge on autonomous-driving technology and robust sales.

 

WHAT TO WATCH:

--SELF-DRIVING TECH: Analysts have been positive about the growth potential of XPeng, a leading Chinese automaker in the autonomous-driving tech space, amid intensifying competition in the field this year. Citi recently upgraded XPeng to a buy rating from neutral to factor in its robust model launches and consistent efforts in the artificial-intelligence and robotics fields.

--MARGINS: The company reported double-digit gross margins for the first three quarters of 2024. Since the company beat its fourth-quarter delivery estimate, investors will be watching the gross margin figure closely to examine its cost control and path to profitability.

--SALES GUIDANCE: Investors will look out for XPeng's first-quarter guidance for revenue and sales. Last week, the carmaker launched new, cheaper versions of the G6 and G9 SUVs, both equipped with its latest fast-charging functions and autonomous-driving features.

 

Write to Jiahui Huang at jiahui.huang@wsj.com

 

(END) Dow Jones Newswires

March 17, 2025 07:14 ET (11:14 GMT)

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