A Xpeng G3 car
Hector Retamal/AFP via Getty Images
Chinese electric-vehicle maker
XPeng
reports first-quarter numbers on Monday. Investors could use good news.
Maybe earnings will help. Analysts expect a loss of 30 cents a share on sales of $1.1 billion. In the fourth quarter, XPeng (ticker: XPEV) reported an adjusted loss of 11 cents from about sales $1.3 billion.
XPeng delivered 41,751 vehicles in the fourth quarter of 2021. The company delivered 34,561 vehicles in the first quarter. The Chinese Lunar New Year holiday in February is a seasonally weak period. First-quarter sales also were impacted by Covid’s reemergence in some areas.
Gross profit margins are expected to be about 12.7%. Gross profit margins were 12% in the fourth quarter.
Coming into Monday trading, XPeng stock has declined about 54% this yea, worse than the 18% and 14% respective returns of the
S&P 500
and
Investors have sold high-growth stocks amid inflation and rising interest rates. Delisting fears have also contributed to 2022 losses. Shares of U.S.-listed foreign companies might be delisted if the foreign companies don’t meet U.S. auditing standards. Many firms in China don’t yet meet the requirements.
The
Invesco Golden Dragon China ETF
(PGJ) holds stock in U.S.-listed Chinese companies including XPeng. The ETF has dropped about 28% in 2022.
Options markets imply the stock will move 10% to 12%, up or down, following earnings. That would be more volatility than recent quarters. XPeng stock has moved about 3.5%, up or down, after the following four quarters. Shares have risen twice and fallen twice over the past four quarters.
The company hosts an earnings conference call at 8 a.m. Eastern time to discuss results. Analysts and investors will be interested to hear an update about demand, Covid and raw materials inflation.
Write to Al Root at allen.root@dowjones.com
