GWLLF - Great Wall Motor: Weaker-Than-Expected Profitability Was A Disappointment
- Great Wall Motor's stock price dropped -13% post-results, as its 1Q 2021 earnings fell by -41% QoQ and were below market expectations.
- The company's profitability was weaker than expected, as a result of a spike in expenses, an unfavorable sales mix, and negative operating leverage.
- Great Wall Motor is expected to deliver strong earnings growth this year, but this has already been priced in, and there is room for disappointment.
- Great Wall Motor is currently valued by the market at 22.0 times consensus forward FY 2021 P/E, and it boasts a consensus forward FY 2021 dividend yield of 2.2%.
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Great Wall Motor: Weaker-Than-Expected Profitability Was A Disappointment