Ahead of Li Auto Inc.’s (NYSE:LI) third-quarter earnings call, analyst sentiment for the Tesla Inc. (NASDAQ:TSLA) rival has turned bearish.Biggest-Ever Revenue DeclineAnalysts predict that the automaker will report its biggest-ever revenue decline, with sentiments showcasing an expected 38% year-on-year dip for the automaker, Bloomberg reported on Tuesday. The decline is expected to be Li Auto's steepest since its listing on the New York Stock Exchange in 2020.Li Auto delivered over 93,211 vehicles in Q3, r ...

Core Viewpoint - The Zacks Automotive - Original Equipment industry is expected to benefit from a combination of new tax incentives for car buyers, rising demand for advanced electronic systems, and strategic partnerships among key players in the sector [1][3][4]. Industry Overview - The Zacks Automotive - Original Equipment Industry includes companies that design and produce passive safety systems, driveline technologies, and metal forming technologies for various types of vehicles, including electric and hybrid models [2]. - The industry also provides equipment financing and leasing solutions, primarily through third-party funding arrangements [2]. Factors Influencing Outlook - The Trump administration's tax incentive allows qualifying car buyers to deduct up to $10,000 on interest paid for new U.S.-assembled vehicles, potentially increasing vehicle demand and the need for related equipment [3]. - Demand for advanced electrical and electronic systems, such as ADAS and infotainment features, is increasing, allowing OEMs to supply more high-value components and improve profitability [4]. - Protectionist tariffs, including a 25% tariff on imported engines and transmissions starting May 2025, are raising costs for auto equipment manufacturers [5]. Industry Performance - The Zacks Automotive - Original Equipment Industry holds a Zacks Industry Rank of 89, placing it in the top 37% of over 250 Zacks industries, indicating positive near-term prospects [6][7]. - Despite this ranking, the industry has underperformed the S&P 500 and its sector over the past year, returning 2.9% compared to the S&P 500's 19.1% and the broader sector's 24.5% [9]. Valuation Metrics - The industry is currently trading at an EV/EBITDA ratio of 17.33X, which is lower than the S&P 500's 18.59X and the sector's 23.51X [13]. - Over the past five years, the industry's EV/EBITDA ratio has ranged from a high of 22.17X to a low of 8.07X, with a median of 13.51X [14]. Notable Companies - **Magna International Inc. (MGA)**: A global automotive supplier focusing on innovation and technology development, with a Zacks Rank of 2 (Buy) and an average earnings surprise of 7.67% [16][17]. - **QuantumScape Corporation (QS)**: A battery developer for electric vehicles, known for its solid-state battery technology, with a Zacks Rank of 2 and a projected EPS growth of 21.3% for 2025 [21][22]. - **Luminar Technologies, Inc. (LAZR)**: A company specializing in autonomous vehicle sensors, with partnerships with major automakers and a Zacks Rank of 2, projecting a 52.2% EPS growth for 2025 [25][26].

Li Auto Inc. (NASDAQ:LI) has announced it will report its third-quarter earnings on November 26. Here’s what to know ahead of the announcement.Hesai Group DealThe automaker also announced on Friday that it will host its earnings call with investors and shareholders at 7:00 AM Eastern Time on Nov. 26.Li Auto recently signed an agreement with Chinese LiDAR maker Hesai Technology (NASDAQ:HSAI) as the company's sole supplier of LiDAR technology, a crucial element in advanced driver assistance technology, as wel ...

Group 1 - The focus has shifted from evaluating solar manufacturers and renewable yieldcos to analyzing lidar companies, particularly their technology, adoption rates, and revenue growth [1]

Financial Data and Key Metrics Changes - Total revenue for Q2 was $156 million, with sales of goods revenue at $131 million, reflecting a 1% year-over-year increase driven by double-digit customer demand despite strategic price reductions [25][27] - Gross profit declined to $70 million, a 58% decrease year-over-year, resulting in a gross margin of 11%, down 12% from the previous year [26][27] - Operating expenses were reduced by 20% year-over-year to $57 million, contributing to a slight decline in adjusted EBITDA loss to $30 million compared to $29 million in the same period last year [27][28] Business Line Data and Key Metrics Changes - The Antora, VANELO, and Skyland platforms contributed 56% to total sales of goods revenue, more than doubling from 28% in the prior year [26] - Software license revenue decreased by 85% year-over-year to $1.2 million, primarily due to a decline in per vehicle software license revenue [26] - Service revenue was $23 million, down 34% year-over-year, mainly due to lower revenue from non-recurring engineering services contracts [26] Market Data and Key Metrics Changes - Shipments of the Antora series solution surged 112% year-over-year to 135,000 units during the quarter, indicating strong market demand [7] - The company serves 18 OEMs across 28 brands globally, with significant contributions from Geely, which accounted for nearly 40% to 50% of total business [12][58] - In the EU market, the company has 14 active projects with eight different global automakers and has secured four wins to date [18] Company Strategy and Development Direction - The company aims to achieve EBITDA breakeven in each of the remaining quarters of 2025, supported by operational discipline and a growing pipeline of projects [5][28] - A new global headquarters in Singapore is set to open in 2025, enhancing global IP management, R&D collaboration, and supply chain optimizations [10][23] - The company is diversifying its technological reach beyond automotive, with partnerships in robotics and AI applications, indicating a strategic shift towards multi-industry applications [9][14] Management Comments on Operating Environment and Future Outlook - Management acknowledged seasonal headwinds but emphasized solid progress in securing new projects and expanding partnerships [5][10] - The company expects full-year revenue to recover strongly and grow by close to 20% year-over-year, driven by volume growth and improved product mix [28] - Management expressed confidence in achieving adjusted EBITDA breakeven in each of the remaining quarters of 2025, despite external challenges [28][29] Other Important Information - The company received three ISO certifications for quality management, environmental stewardship, and occupational health and safety, which are prerequisites for collaboration with leading automakers [23] - The Fujian plant operates at 80% utilization, achieving its 1,000,000 unit annual capacity ahead of schedule, which is critical for global scaling [21] Q&A Session Summary Question: Non-automotive business layout and future development - Management expressed optimism about the potential for non-automotive applications, particularly in robotics, leveraging LiDAR technology [34][35] Question: Progress in overseas expansion - The company has secured multiple international clients, including Volkswagen, and is actively pursuing additional opportunities in global markets [36][37] Question: Update on in-house chip development - Management confirmed ongoing development of the Antora platform and plans to launch the Qualcomm A295 product, indicating a robust roadmap for internal capabilities [38][40] Question: Volume guidance for the second half of the year - The company anticipates shipping between 1,400,000 to 1,500,000 vehicles in the second half, aiming for a total of 2,500,000 to 2,600,000 vehicles for the year, reflecting a 30% year-over-year growth [44][45] Question: Pricing strategy and market competition - Management acknowledged pricing pressures but emphasized ongoing cost optimization efforts and a focus on maintaining market share to support revenue growth [46][48] Question: Update on ADCU business and collaboration with Qualcomm - The company is exploring opportunities with Qualcomm's SoCs and plans to launch a Fusion platform in 2026, indicating a strategic focus on advanced automotive technologies [52][53] Question: Growth drivers for the second half and next year - Management highlighted the importance of diversifying the customer base and expanding partnerships, with a healthy mix of business from both domestic and international OEMs [56][60]

Financial Data and Key Metrics Changes - Total revenue for Q2 was $156 million, with sales of goods revenue at $131 million, reflecting a 1% year-over-year increase driven by double-digit customer demand despite strategic price reductions [24][25] - Gross profit for the quarter was $70 million, a decline of 58% year-over-year, resulting in a gross margin of 11%, down 12% compared to the previous year [25] - Operating expenses were reduced by 20% year-over-year to $57 million, contributing to a slight decline in adjusted EBITDA loss to $30 million from $29 million in the same period last year [26][27] Business Line Data and Key Metrics Changes - The Antora, Vanado, and Skyland platforms contributed 56% to total sales of goods revenue, more than doubling from 28% in the prior year [24] - Service revenue decreased by 34% year-over-year to $23 million, primarily due to lower revenue from non-recurring engineering services [25] Market Data and Key Metrics Changes - Shipments of the Antora series solution surged 112% year-over-year to 135,000 units during the quarter, supporting growth momentum [6] - The company serves 18 OEMs across 28 brands globally, with a significant presence in both the Chinese and international markets [10][17] Company Strategy and Development Direction - The company is focused on achieving EBITDA breakeven in each of the remaining quarters of 2025, with a target of close to 20% revenue growth for the full year [5][27] - A new global headquarters in Singapore is set to open in 2025 to enhance global IP management, R&D collaboration, and supply chain optimizations [9][21] - The company is diversifying its customer base, with Geely accounting for 40-50% of total business and ongoing efforts to expand into international markets [58] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of seasonal headwinds and macroeconomic uncertainties but emphasized solid progress in securing new projects and partnerships [4][24] - The company remains confident in achieving adjusted EBITDA breakeven and expects full-year revenue to recover strongly, driven by volume growth and improved product mix [27] Other Important Information - The company has secured over $1 billion in lifetime revenue from overseas contracts and has 14 active projects with eight different carmakers [6][38] - The company received three ISO certifications for quality management, environmental stewardship, and occupational health and safety, which are prerequisites for collaboration with leading automakers [21] Q&A Session Summary Question: Update on non-automotive business layout and future development - Management expressed optimism about the potential for non-automotive applications, particularly in robotics, leveraging LiDAR technology [33][36] Question: Progress in overseas expansion and international clients - Management highlighted ongoing efforts in Europe and other markets, with 14 active programs and recognition from Volkswagen for innovation capabilities [38][39] Question: Update on in-house chip development - Management confirmed continued growth of the Antora platform and plans to launch Qualcomm A295 products, indicating a robust roadmap for SoC development [40] Question: Volume guidance for the second half of the year - Management projected shipment volumes of 1.4 to 1.5 million vehicles in the second half, aiming for a total of 2.5 to 2.6 million vehicles for the year, reflecting a 30% year-over-year growth [45] Question: Pricing pressures and content per car improvements - Management acknowledged pricing pressures but noted improvements in content per car due to strategic pricing and cost optimization efforts [46][48] Question: Update on ADCU business and collaboration with Qualcomm - Management confirmed plans to work with Qualcomm's SoCs, including the 8,775, and highlighted the development of a Fusion platform for enhanced vehicle features [51][53]

Company Overview - Ouster, Inc. (OUST) shares increased by 14.5% to $28.3 in the last trading session, with a notable trading volume, and have gained 24.2% over the past four weeks [1] - Ouster is experiencing growth due to the rising adoption of LiDAR technology in various sectors including automotive, industrial, robotics, and smart infrastructure [1] Financial Performance - Ouster is projected to report a quarterly loss of $0.48 per share, reflecting a year-over-year change of +9.4%, with expected revenues of $34 million, up 26% from the previous year [2] - The consensus EPS estimate for Ouster has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] Industry Comparison - Ouster is part of the Zacks Electronics - Miscellaneous Components industry, where TE Connectivity (TEL) has a consensus EPS estimate of $2.07, showing a year-over-year change of +8.4% [3][4] - TE Connectivity's stock finished the last trading session down 0.4% at $175.44, with a return of 6.5% over the past month [3]

Group 1 - The core focus is on the increased investment by Sylebra, a hedge fund, in Aeva, a lidar technology company, during its SPAC phase, indicating growing confidence in the company's prospects [1] - The analysis highlights a shift in interest from solar manufacturers and renewable yieldcos to lidar companies, emphasizing the importance of technology, adoption rates, and revenue growth in this sector [1]

Group 1: Market Overview - High volatility in markets throughout 2025 has created opportunities for momentum investors to capture gains when target stocks rise [1] - Timing momentum plays can be challenging, but early identification of targets in a sustained rally can provide an advantage [1] Group 2: EyePoint Pharmaceuticals (EYPT) - EyePoint Pharmaceuticals, a clinical-stage biopharma firm, has seen its stock price forecasted to reach $25.38, indicating a potential upside of 188.39% from the current price of $8.80 [2] - The company reported first-quarter revenue of nearly $25 million, significantly exceeding analyst expectations of just under $9 million [3] - EyePoint's lead drug candidate, DURAVYU, is in a critical Phase 3 clinical trial, with top-line data expected in 2026 [4] - The company ended the first quarter with over $318 million in cash and investments, sufficient to sustain operations through 2027 [4] - EYPT shares have increased by more than 19% in the last month, with analysts suggesting that growth is just beginning [5] Group 3: Nova Ltd. (NVMI) - Nova Ltd., which designs process control systems for semiconductor manufacturing, has a stock price forecast of $277, representing a 26.02% upside from the current price of $219.81 [6] - The company reported quarterly revenue growth of over 50% year-over-year, with earnings per share of $2.18 beating analyst estimates by 10 cents [7] - Analysts project Nova's earnings growth could exceed 7% in the future, supported by a year-over-year cash flow growth of about 32% [8] - NVMI shares have risen by more than 10% in the last month, with a consensus price target suggesting over 27% upside potential [9] Group 4: Ouster Inc. (OUST) - Ouster Inc. specializes in LiDAR technology for 3D mapping and imaging, with a stock price forecast of $14.10, indicating a 2.45% upside from the current price of $13.76 [10] - The company reported first-quarter revenue of $33 million, a 26% year-over-year increase, and a GAAP gross margin improvement to 41% from 29% [11] - Ouster projects second-quarter revenue between $32 million and $35 million, indicating significant upside potential [11] - The company's stock has rallied over 71% in the last year, with analysts optimistic about further growth due to increasing demand for robotics and automation services [12]

Group 1 - The analyst has shifted focus from evaluating solar manufacturers and renewable yieldcos to assessing lidar companies, particularly their technology, adoption rates, and revenue growth [1]