XPeng Earnings Beat Expectations. Its Stock Is Rising.

3 weeks ago 14
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Updated Aug. 26, 2021 10:16 americium ET / Original Aug. 26, 2021 6:44 americium ET

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A Xpeng P7 car is seen during the 19th Shanghai International Automobile Industry Exhibition successful Shanghai connected April 19, 2021.

Hector Retamal/AFP via Getty Images

  XPeng banal was rising successful aboriginal trading Thursday, aft dropping successful premarket trading. The Chinese electric car shaper reported amended than expected 2nd 4th numbers.

XPeng (ticker: XPEV) shares were initially down astir 1.9% successful premarket trading Thursday. Shares are present up astir 2.5% successful aboriginal trading. The S&P 500 is down astir 0.1%. The Dow Jones Industrial Average has gained astir 0.2%.

The moves are really tiny for XPeng considering however overmuch its banal usually moves aft earnings. Shares person moved astir 13%, up oregon down, connected mean pursuing the past 4 quarterly earnings reports.

XPeng reported a per shares nonaccomplishment of 21 cents from $583 cardinal successful sales. Analysts were looking for 22 cent nonaccomplishment from $552 cardinal successful sales.

The institution delivered 17,398 vehicles during the 2nd quarter. Gross nett margins—an important metric for a caller institution not yet making bottommost enactment profits—came successful astatine 11.9%. Analysts projected 11.3% for the 2nd quarter.

Citigroup expert Jeff Chung called the results awesome and the outlook blimpish successful a Thursday report, reacting to the net report.

Looking ahead, XPeng expects to present astir 22,000 vehicles successful the 3rd 4th and make income of astir $756 million, amended than the $658 cardinal analysts are projecting. XPeng is making cars retired of 1 works which is operating adjacent its capacity. The institution is readying to treble capableness astatine that works by aboriginal 2022.

Chung rates XPeng banal Buy and arsenic a $53.40 people terms for shares.

The institution feels bully astir results too. “Our outstanding 2nd 4th 2021 results bespeak XPeng’s enactment successful China’s booming Smart EV manufacture wherever we proceed to present innovative technology, differentiated products and premium services,” said President Dr. Hongdi Brian Gu successful the company’s quality release.

It looks similar a coagulated quarter. Still, XPeng banal is down astir 2% twelvemonth to date. Rising involvement rates—which wounded richly worth precocious maturation companies much than others—as good arsenic a semiconductor shortage constraining planetary car accumulation and a selloff successful Chinese stocks has wounded shares successful 2021. Still, the banal has gained recently, rising much than 30% implicit the past 3 months.

Write to allen.root@dowjones.com

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