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Li Auto (NASDAQ:LI) stock rose more than 5% in premarket hours after more than doubling profit expectations and record deliveries in Q4.
For the reported quarter, the Chinese EV manufacturer notched adjusted EPADS of $0.13, well above the $0.06 expectation. Meanwhile, revenue rose 66.2% from the prior year quarter to $2.56B, narrowly exceeding estimates. While vehicle margin contracted 230 basis points from the prior year, total vehicle deliveries jumped 31.5% year over year to 46,319 units in the quarter.
“We ended the year on a high note, with record deliveries of more than 20,000 vehicles in December, setting a new milestone for our company and emerging new energy automakers in China,” CEO Xiang Li said. “While Li L9 continued to dominate the monthly full-size SUV sales chart in China, Li L8 proved to be another blockbuster and one of China’s best-selling large SUVs since its debut. The strong popularity of our vehicles reflects our relentless pursuit of product excellence and the outstanding experience we offer to our family users.”
CFO Tie Li added that strong delivery dynamics are likely to keep revenue growth on its current trajectory, while “disciplined cost management and focused execution” will defend margins.
For the first quarter of 2023, the company expects deliveries of vehicles to range from 52,000 to 55,000 vehicles, representing an increase of 64% to 73.4% from the first quarter of 2022 and further acceleration from the strong close to the year. Additionally, a forecast of between about $2.53B and $2.68B for Q1 came in above the consensus of $2.51B.
In January, the company delivered 15,141 vehicles. The company also discussed the early February launch of the Li L7 SUV, which it expects to continue driving demand.
Shares of the Beijing-based automaker rose 5.04% in premarket trading on significant volume.
Dig into the details of the quarter.
