Li Auto's fourth-quarter earnings fell year over year, but revenue came in above market estimates while the Chinese electric vehicle manufacturer expects its sales to decline annually in the ongoing three-month period. The company anticipates revenue to be in a range of 23.4 billion renminbi ($3.2 billion) to 24.7 billion renminbi ($3.4 billion) for the first quarter of 2025, indicating an annual decline of 3.5% to 8.7%.
The current consensus on FactSet is for sales of 35.13 billion renminbi. The automaker's Nasdaq-listed shares fell 4.2% in the most recent premarket activity. "Moving forward, we remain committed to expanding our business and driving technological innovation while striving for financial excellence," Chief Financial Officer Tie Li stated.
"We aim to grow sustainably and steadily advance toward our long-term vision in this intelligent era, creating value for all our stakeholders." For the December quarter, the electric vehicle manufacturer reported adjusted earnings of 3.79 renminbi per American depositary share, down from 4.23 renminbi a year earlier.
Three analysts polled by FactSet expected non-GAAP EPS of 4.38 renminbi. Revenue advanced to 44.27 billion renminbi from 41.73 billion renminbi, surpassing the Street's expectations set at 43.55 billion renminbi. Vehicle sales inclined 5.6% year over year to 42.64 billion renminbi, primarily driven by higher deliveries, although this was partially offset by lower average selling prices due to a "different product mix" and adjustments in pricing strategy.
Li Auto delivered 158,696 vehicles in the fourth quarter, reflecting a roughly 20% annual increase. "Our record performance in the fourth quarter propelled our full-year deliveries to surpass the 500,000 milestone," Chief Executive Xiang Li expressed. The company expects to deliver between 88,000 and 93,000 vehicles for the current quarter, having recorded distributions of 29,927 and 26,263 units in January and February, respectively.
This guidance reflects year-over-year growth ranging from 9.5% to about 16%. Gross margin stood at 20.3% in the fourth quarter, down from 23.5% in the prior-year period, primarily due to a decrease in vehicle margin. Operating expenses decreased to 5.27 billion renminbi from 6.75 billion renminbi last year..