Year-over-year, XPeng (XPEV) disclosed a diminished first-quarter loss propelled by a substantial revenue surge. The Chinese automaker projects a 38% increase in vehicle deliveries for the current quarter compared to the corresponding period of the previous year.
XPeng Quarterly Earnings Outlook
The electric vehicle manufacturer XPeng (NYSE: XPEV) documented a modified loss per American depositary share of 1.49 renminbi ($0.21), a decrease from the previous year's loss of 2.57 renminbi. The analysts surveyed by Capital IQ had anticipated a loss of 1.77 renminbi per share, normalized. In March, the company's revenue increased from 4.03 billion renminbi to 6.55 billion renminbi, exceeding four analysts' 6.15 billion renminbi forecast.
XPeng increased its quarterly vehicle deliveries by 20% to 21,821 compared to last year. XPeng reports that vehicle sales increased by 58% to 5.54 billion renminbi, primarily due to increased shipments, particularly of the X9 model.
Xpeng's Management Review
Despite "ferocious market competition," co-president Hongdi Brian Gu remarked that the company's gross margin increased from 1.7% to 12.9% in the past year. According to a statement, "XPeng has developed a unique approach to enhancing its profitability and international market potential through its smart EV business and advanced technologies."
Executive Chief Xiaopeng articulated his belief in the organization's capacity to efficiently introduce competitive models internationally, thereby fostering the pervasive integration of AI-driven intelligent automobiles. "Our industry-leading technologies are expected to gain greater market influence and yield better financial returns," said the executive.
Xpeng's Vehicle Delivery Forecast
With 9,393 units in April alone, XPeng anticipates delivering between 29,000 and 32,000 vehicles for the current quarter, representing an annual increase of 25% to 38%. According to the company's projections, annual revenue will range from 7.5 billion to 8.3 billion renminbi, representing an approximate annual growth rate of 48% to 64%. The revenue forecast of three analysts surveyed by Capital IQ is 10.65 billion renminbi.
XPEV Stock Forecast Technical Analysis
In the daily chart of XPEV stock price, the overall market momentum is bearish, whereas the latest quarterly earnings report showed an upbeat result, suggesting a bullish trend reversal.
After the earnings report, XPeng stock shot higher and reached the monthly high but closed the day immediately at the daily low. However, the recent Xpeng stock price showed a bullish 20-day EMA carry, which could be a potential sign of a trend reversal.
Looking at the broader context, the ongoing buying pressure is supported by the potential Inverse Head and Shoulders breakout, where the neckline is at the 10.56 level. In that case, the conservative bullish approach is to wait for a daily candle above the 10.56 level before anticipating the 18.74 resistance level.
On the other hand, the ongoing bearish pressure is still potent. Any bearish reversal with a stable market below the 8.00 psychological line could resume the downside pressure.
