Why Li Auto Shares Are Racing Higher Monday Morning

Li Auto Inc LI shares are trading higher Monday after the company reported better-than-expected financial results and issued strong guidance.

What Happened: Li Auto reported fourth-quarter revenue of $2.56 billion, which beat consensus estimates of $2.55 billion, according to Benzinga Pro. The company reported fourth-quarter adjusted earnings of 13 cents per share, which beat average analyst estimates of 2 cents per share.

Fourth-quarter deliveries came in at 46,318, up 31.5% year-over-year. 2022 deliveries totaled 133,246 vehicles. 

Li Auto said free cash flow reached 472.3 million in the fourth quarter, up 101.6% year-over-year. 

"We were pleased to conclude 2022 with strong performance in the fourth quarter despite ongoing macro uncertainties," said Tie Li, CFO of Li Auto.

"With sustained R&D investment and business expansion supported by our strong cashflow and ample cash reserves, we continue to be excited about our growth trajectory as a leader in China's booming NEV market."

In January, the company delivered 15,141 vehicles, representing an increase of 23.4% compared to January of 2022. On Feb. 8, Li Auto officially launched the new Li L7, a 5-seat SUV.

Li Auto said it sees first-quarter revenue in a range of $2.53 billion to $2.68 billion. The company expects to deliver between 52,000 and 56,000 vehicles in the first quarter.

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LI Price Action: Li Auto has a 52-week high of $41.49 and a 52-week low of $12.52.

The stock was up 6.16% at $24.66 at time of publication, according to Benzinga Pro.

Photo: courtesy of Li Auto.