EHang Holdings ( EH 16.44% ) was soaring as the trading week wrapped up. On Thursday, its American depositary receipts (ADRs) surged in the stock market, achieving an impressive gain of over 16% in value by the end of the day. This was not surprising, given that the Chinese aerial-vehicle company reported an unexpected net-income figure for its most recent quarter. In contrast, the S&P 500 The index saw a decrease, dropping by 0.8%.
Reaching greater heights in the second quarter
EHang announced a significant and dramatic increase in its revenue for the second quarter, which skyrocketed by an astonishing 920% compared to the previous year, reaching over 102 million yuan ($14 million). Additionally, the company transitioned to a non- GAAP The adjusted net profit for the period amounted to 1.2 million yuan ($168,330), which translates to 0.02 yuan ($0.01) per share. In contrast, the net loss for Q2 2023 was significant, totaling nearly 52 million yuan ($7.3 million).
EHang’s performance significantly surpassed analyst predictions. Experts who track the stock anticipated revenues of just 92 million yuan ($12.9 million) and forecasted an adjusted loss of 0.84 yuan ($0.12).
A significant portion of this success was attributed to the high volume of business, as a group of Chinese clients placed large orders with the company. Furthermore, receiving three production certificates from the nation’s aviation-industry regulator resulted in what the company referred to as “a substantial increase in demands and orders.”
The guidance indicates that growth in the triple digits is expected to persist.
With these favorable conditions, EHang anticipates ongoing growth in the triple digits. The company has provided a revenue forecast for its current third quarter, estimating around 123 million yuan ($17.3 million). If this target is met, it would represent an increase of about 330% compared to the same period last year.
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