XPEV - Xpeng Q4 earnings preview: Wary hopes on recovery in 2023

2023-03-16 12:12:57 ET

Xpeng ( NYSE: XPEV ) is scheduled to announce Q4 earnings results on Friday, March 17th, before market open.

The consensus EPS Estimate is -$0.35 (-59.1% Y/Y) and the consensus Revenue Estimate is $774.44M (-42.2% Y/Y).

Over the last 2 years, XPEV has beaten EPS estimates 63% of the time and has beaten revenue estimates 75% of the time.

The Chinese EV manufacturer’s stock has fallen sharply over the past year, declining over -70% . SA has warned that the stock is at high risk of performing badly amid decelerating momentum and inferior profitability when compared to other consumer discretionary stocks.

XPeng ( XPEV ) gets a Sell rating from SA's Quant system, although SA authors and Wall Street analysts still look at the stock as a Buy.

Rising Sino-American political tensions , a pricing war in China between major automakers, and some mixed monthly earnings results have hit XPeng ( XPEV ) in recent months.

Shares have shown significant volatility on earnings days, jumping over +30% after its most recent results.

Additionally, the stock is due to be added to multiple major indices in China during the month of March. The automaker is also looking to expand into Europe in 2023, according to announcements made in January.

Like other players in the industry, the EV maker also announced price cuts at the start of the year in an effort to boost sales after it recorded a 2.5% drop in 2022.

JPMorgan warned in a downgrade in January that although XPeng ( XPEV ) should benefit from reopening trade for the Chinese automobile sector, it faces significant pricing competition in the mass segment.

On the other hand, SA contributor The Asian Investor sees deliveries making a full rebound in March. This, along with new product launches, could drive XPeng’s ( XPEV ) delivery growth going forward.

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