XPeng (NYSE:XPEV) stock is falling on Friday following the release of its earnings report for the second quarter of 2023.
The bad news for investors in XPEV stock starts with its earnings per share of -3.10 yuan, or -43 cents. For the record, Wall Street was expecting the firm to report an EPS of -1.23 yuan. That’s also wider than the -2.88 yuan reported in the same period of the year prior.
Another blow to the electric vehicle (EV) company’s stock comes from its revenue of 5.06 billion yuan, or $698.17 million. Just like with its EPS, this is worse than the 5.09 billion yuan that analysts were predicting. It also represents a 31.9% drop year-over-year (YOY) from 7.44 billion yuan.
Dr. Hongdi Brian Gu, Honorary Vice Chairman and Co-President of XPeng, chose to focus on sequential rather than YOY data in the report:
“Benefitting from the new products and supported by more efficient sales channels, our vehicle deliveries have posted sequential growth for six consecutive months […] With the G6 and other new products accelerating sales growth, we expect gross margin to gradually recover while operating efficiency continues to improve and free cash flow to substantially improve.”
What’s Next for XPEV Stock?
The latest earnings report also provides insight into XPeng’s guidance for 2023. The EV company is expecting revenue for the year to range from 8.5 billion yuan to 9 billion yuan. That would represent a YOY increase of between 24.6% and 31.9% compared to 2022.
XPEV stock is down 6.1% as of Friday morning alongside its earnings release. This has some 13 million shares changing hands. The company’s daily average trading volume is about 21.4 million shares.
Investors will want to stick around for even more of the most recent stock market news for today!
We’ve got all of the latest stock market stories worth reading about on Friday! That includes what has shares of Applied Materials (NASDAQ:AMAT) stock rising, why Chinese stocks are down today and more. Investors can read up on all of these matters at the links below!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
