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XPeng (XPEV) to Report Q3 Earnings: Here's What to Expect

XPeng Inc. XPEV is slated to release third-quarter 2023 results on Nov 15, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s loss per share is pegged at 72 cents.

For the third quarter, the consensus estimate for XPEV’s loss per share has widened by 43 cents in the past 90 days. Its bottom-line estimate implies a decline of 100% from the year-ago reported number.

Over the trailing four quarters, XPEV surpassed earnings estimates on two occasions and missed twice, the average negative surprise being 11.91%. This is depicted in the graph below:

XPeng Inc. Sponsored ADR Price and EPS Surprise

XPeng Inc. Sponsored ADR Price and EPS Surprise
XPeng Inc. Sponsored ADR Price and EPS Surprise

XPeng Inc. Sponsored ADR price-eps-surprise | XPeng Inc. Sponsored ADR Quote

Q2 Bottom Line

In second-quarter 2023, XPEV’s adjusted loss per share of 45 cents improved from the loss of 47 cents in the prior-year quarter but was wider than the Zacks Consensus Estimate of a loss of 29 cents.

Things to Note

In the second quarter of 2023, XPeng reported total revenues of $698.2 million, down from $1,110.2 million recorded in the corresponding quarter of 2022. In the last reported quarter, the company’s gross margin fell to negative 3.9%, down from the positive gross margin of 10.9% reported in the corresponding quarter of 2022. Falling revenues and thinning margins are likely to have persisted in the third quarter and adversely impacted XPeng’s performance.  

In the third quarter of 2023, XPeng’s research and development expenses rose 8.1% to $188.9 million due to high expenditure on the development of new vehicle models. While high expenditure on the development of new models improves XPeng’s prospects, it is likely to have hurt its margins in the to-be-reported quarter.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for XPeng for the quarter to be reported, as it does not have the right combination of the two key ingredients. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as elaborated below.

Earnings ESP: XPEV has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is on par with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: It currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Peer Releases

Rivian RIVN reported third-quarter 2023 results on Nov 7. Its loss per share of $1.19 was narrower than the Zacks Consensus Estimate of $1.36 and also from the year-ago quarter of $1.57. It registered quarterly revenues of $1,337 million, beating the Zacks Consensus Estimate of $1,305 million. The top line increased 149.4% year over year.

RIVN had cash and cash equivalents of $7.94 billion at the end of the reported quarter, down from $11.56 billion recorded as of Dec 31, 2022. Its long-term debt was $2,720 million, higher than $1,231 million as of Dec 31, 2022.

Fisker FSR reported third-quarter 2023 results on Nov 13. Its adjusted loss per share of 27 cents was wider than the Zacks Consensus Estimate of a loss of 19 cents but was narrower than the year-ago quarter’s 49 cents. It registered quarterly revenues of $72 million, missing the Zacks Consensus Estimate of $73 million.

FSR had cash and cash equivalents of $527.4 million at the end of the reported quarter, down from $736.5 million recorded as of 2022-end.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Fisker Inc. (FSR) : Free Stock Analysis Report

XPeng Inc. Sponsored ADR (XPEV) : Free Stock Analysis Report

Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report

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