XPeng Prepares to Unveil Q3 Earnings: Anticipated Insights

Xpeng Stock

XPeng Inc. (NYSE:XPEV) is gearing up to announce its third-quarter 2023 financial results on Nov 15, before the market opens. Analysts project a loss per share of 72 cents for the quarter, according to the Zacks Consensus Estimate.

Over the past 90 days, the consensus estimate for XPEV’s Q3 loss per share has widened by 43 cents, implying a 100% decline from the year-ago reported figure. In the last four quarters, XPEV exceeded earnings estimates twice and fell short twice, with an average negative surprise of 11.91%.

Highlights from Q2

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

Key Considerations

During Q2 2023, XPeng’s total revenues amounted to $698.2 million, a decline from the $1,110.2 million recorded in the corresponding quarter of 2022. The gross margin also saw a downturn, falling to negative 3.9% from the positive 10.9% reported in Q2 2022. The persistent decline in revenues and thinning margins are likely to have impacted XPeng’s overall performance in Q3.

In Q3 2023, XPeng’s research and development expenses increased by 8.1% to $188.9 million, primarily due to substantial spending on the development of new vehicle models. While this investment enhances XPeng’s future prospects, it may have exerted downward pressure on its margins during the quarter under review.

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