XPEV - Xpeng misses on Q4 earnings as vehicle margins shrink
2023-03-17 06:49:05 ET
Xpeng ( NYSE: XPEV ) stock slipped in premarket trading after missing Q4 expectations and noting continued margin compression.
The Chinese automaker reported $0.37 in earnings per share, $0.02 below the analyst expectation, while a 39.9% drop in revenue year over year to $750M came up $24.44M short of the consensus. Quarterly vehicle deliveries dropped nearly 50% year over year to 22,204. Vehicle margin declined 590 basis points sequentially as a pricing war in China continues in the EV industry.
“With the optimization of our product portfolio and the significant improvement of our marketing capabilities, we will resume growth in our sales and market share,” Xpeng co-president Dr. Hongdi Brian Gu said. “In the meantime, we will improve operational efficiency across our business processes and continue to reduce costs.”
Management expects deliveries to range between 18,000 and 19,000 for the first quarter, marking a 45% to 47.9% decrease from the prior year quarter and a continued sequential decline. Total revenues are projected to be between RMB4.0B ($580.4M) and RMB4.2B ($609.4M), a 43.7% to 46.3% year over year drop.
Shares of Xpeng ( XPEV ) slid 2.78% in early premarket trading.
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Xpeng misses on Q4 earnings as vehicle margins shrink