LI Earnings Prediction
The chart below shows how LI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, LI sees a +1.97% change in stock price 10 days leading up to the earnings, and a -2.42% change 10 days following the report. On the earnings day itself, the stock moves by -3.98%. This data can give you a slight idea of what to expect for the next quarter's release.
LI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
44.27B
6.09%
3.26%
Gross Margin
20.26%
-13.60%
-5.86%
Operating Margin
8.36%
14.84%
4.37%
Net Margin
7.98%
-42.09%
21.28%
EPS
0.23
-91.42%
-82.58%
No Data Available
LI Earnings Analysis
Li Auto Inc Corporation (LI.O) Earnings Conference Call
Positive
NEV Market Penetration Growth: China's NEV market maintained rapid growth in 2024, with a penetration rate exceeding 50% for many consecutive months, reaching 45.9% for the full year, up 12 percentage points year-over-year.
Sales Champion in NEV Market: Li Auto solidified its position as the sales champion among Chinese auto brands in the RMB200,000 and above NEV market, achieving a full year market share of 15.3%.
Record Vehicle Deliveries: In Q4 2024, Li Auto delivered over 158,000 vehicles, setting a new quarterly record, and exceeded 500,000 units in full year deliveries, making it the first emerging NEV brand and first Chinese premium auto brand to reach this milestone.
Strong Delivery Performance: Each model in the Li L series, including the L6, L7, L8, and L9, achieved cumulative deliveries of over 200,000 units respectively, showcasing strong user recognition and efficient delivery capability.
Strong Revenue Performance: Total revenues in Q4 2024 reached RMB44.3 billion, with full year total revenues at RMB144.5 billion, indicating strong financial performance.
Cash Reserves for Investments: Li Auto's cash on hand reached RMB112.8 billion, providing solid support for long-term investments in electrification and AI.
R&D Investment and Innovation: R&D investments exceeded RMB11 billion in 2024, driving breakthroughs in autonomous driving systems, solidifying Li Auto's position as a top-tier player in the sector.
Autonomous Driving Enhancement: The rollout of AD Max V13 upgraded highway NOA to an end-to-end architecture, enhancing autonomous driving capabilities across urban and highway scenarios.
Supercharging Network Expansion: Li Auto built 1,420 supercharging stations in 2024, operating the largest highway supercharging network in China, with over 1,900 stations and 10,000 charging stalls in operation.
Sales Efficiency Improvement: The company improved the quality and sales efficiency of retail stores, increasing the proportion of sales centers from 24% to 42% by the end of 2024, and total display slots increased from over 2,600 to over 3,700.
Global Expansion Initiatives: Li Auto opened its first overseas R&D center in Munich, Germany, marking a significant step in its globalization strategy, and established servicing centers in Kazakhstan, Dubai, and Uzbekistan.
Negative
Q4 Revenue Growth Slowdown: Total revenue in Q4 2024 was RMB44.3 billion, which is only a 6.1% increase year-over-year, indicating slower growth compared to previous quarters.
Vehicle Margin Decline: Vehicle margin decreased to 19.7% in Q4 2024 from 22.7% in the same period last year, reflecting challenges in maintaining profitability amid a changing product mix.
Net Income Decline: Net income in Q4 2024 dropped by 38.6% year-over-year to RMB3.5 billion, highlighting significant profitability concerns despite a quarter-over-quarter increase.
Free Cash Flow Decline: Free cash flow decreased to RMB6.1 billion in Q4 2024 from RMB14.6 billion in the same period last year, indicating reduced cash generation capabilities.
Revenue Decline Forecast: The company expects total revenue for Q1 2025 to decline by 8.7% to 3.5% year-over-year, suggesting potential challenges in maintaining revenue growth in the near term.
LI FAQs
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LI Earning Call Sentiment
Li Auto Inc. (LI) Q4 2024 Earnings Call Transcript
LI.O
-3.17%Positive
The earnings call presents a mixed picture: while vehicle sales revenue and operating income increased, gross profit and net income decreased. The Q&A reveals strategic plans for new model launches and AI investments, but lacks specifics. The vehicle margin decline and the cautious guidance of 19% for Q1 gross margin suggest potential challenges. Despite strong cash position and operational improvements, the lack of clear AI investment details and management's vague responses create uncertainties. Given these factors, the stock is likely to remain stable, resulting in a neutral sentiment.
