On Tuesday, August 23, Xpeng (NYSE:XPEV) is expected to release its Q2 earnings results just before the market opens.
The business forecast Q2 deliveries of between 31,000 and 34,000 automobiles, up 78.2% to 95.4% from the same period in 2021, in its Q1 earnings announcement. In the end, 34,422 Smart EVs were delivered by XPeng in Q2 (+98% Y/Y).
The Guangzhou-based EV maker also reached 200K total deliveries throughout the quarter.
The stock, however, has consistently underperformed its peers YTD. Both XPeng (XPEV) and Lucid (NASDAQ:LCID) had declines of almost 60%, while Fisker (FSR) reported a decline of almost 50%. Nikola (NASDAQ:NKLA) has decreased by over 45%.
EPS projections have had 0 upward and two downward revisions in the previous three months. There have been two downward and 0 upward adjustments to revenue estimates. -$0.33 (-57.1% Y/Y) is the consensus estimate for EPS, while $1.1B (+88.8% Y/Y) is the average estimate for sales.
Early in August, Macquarie lowered the stock’s target price and downgraded it from outperform to neutral, citing a slowdown in XPeng’s primary market sector, the midsize high-tier category.
The results of XPeng’s upcoming Q2 earnings call will be a key factor in determining whether the divergence persists, according to Livy Investment Research, but The Asian Investor believes the stock is undervalued given that XPeng had the fastest EV growth in July and the highest monthly delivery volume.
In August, Morgan Stanley gave Xpeng (XPEV) a Buy-equivalent rating in addition to an “Attractive” rating for the Chinese EV market, indicating that shares may roughly double in the coming year.
The electric vehicle manufacturer has consistently outperformed revenue and EPS expectations over the past year.
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Author Jowi Kwasu 
