EHang Holdings (NASDAQ:EH) was on a high at the end of the trading week. On Thursday, American Depositary Receipts (ADRs) exploded on the stock exchange, recording a daily gain of over 16%. This was no surprise, as the Chinese aircraft company reported a surprising net profit in the last quarter. In contrast, S&P500 The index remained flat, recording a decline of 0.8%.
Soaring in the second quarter
EHang reported a significant and strong increase in its second quarter revenue, which rose an incredible 920% year-on-year to over 102 million yuan ($14 million). In addition, the company reported non-GAAP (adjusted) net income for the period; this was 1.2 million yuan ($168,330), or 0.02 yuan ($0.01 per share). The net loss in the second quarter of 2023 was significant, at nearly 52 million yuan ($7.3 million).
With this performance, EHang nearly beat analysts’ estimates. Forecasters tracking the stock had only expected revenue of 92 million yuan ($12.9 million) and modeled an adjusted loss of 0.84 yuan ($0.12).
Much of this outperformance was due to sheer volume, as a number of Chinese customers placed large orders with the company. In addition, the award of three production licenses by China’s aviation authority led to a “significant increase in demand and orders,” it said.
Forecasts indicate continuation of triple-digit growth
With this tailwind, EHang expects to continue to achieve triple-digit growth. For the current (third) quarter, the company gave a revenue forecast of around 123 million yuan (US$17.3 million). If achieved, this would represent an improvement of around 330% year-on-year.
Should you invest $1,000 in EHang now?
Before you buy EHang shares, consider the following:
The Motley Fool Stock Advisor The analyst team has just published what they believe to be The 10 best stocks for investors to buy now… and EHang wasn’t one of them. The 10 stocks that made the cut could deliver huge returns in the years to come.
Consider when NVIDIA created this list on April 15, 2005… if you had invested $1,000 at the time of our recommendation, You would have $787,394!*
Stock Advisor offers investors an easy-to-understand plan for success, including instructions on how to build a portfolio, regular updates from analysts, and two new stock recommendations per month. The Stock Advisor Service has more than quadrupled the return of the S&P 500 since 2002*.
View the 10 stocks »
*Stock Advisor returns as of August 22, 2024
Eric Volkman does not own any stocks mentioned. The Motley Fool does not own any stocks mentioned. The Motley Fool has a disclosure policy.
Why EHang Holdings Stock Crashed the Market Today was originally published by The Motley Fool
:quality(85)/cloudfront-us-east-1.images.arcpublishing.com/infobae/E5JB3J6FFBAJXHEWPSCMTZQY4E.jpg "At the end of the interview, José Ramón Fernández and André Marín recorded a live program")
