To The Moon

$BYD Co., Ltd.(BYDDY)$ have been gathering some positive and negative news, with the European Union is probing whether China provided unfair subsidies for a BYD electric car plant in Hungary,

And we are also seeing BYD making its expansions into the South Korea's Passenger EV Market. While these news have seen some investors interest in its recent stock movement, but can the momentum continue?

BYD Company (BYDDY) Earnings Forecast

While BYD earnings date have not been confirmed, there have been estimate that it might be on 24 March 2025, where the Q4 quarter’s earnings estimate for BYDDY is $1.39 with a range of $1.30 to $1.47. The previous quarter’s EPS was $1.12. BYDDY beat its EPS estimate 100.00% of the time in the past 12 months, while its overall industry beat the EPS estimate 59.38% of the time in the same period. In the last calendar year BYDDY has Outperformed its overall industry.

BYD Company (BYDDY) Sales Forecast

The Q4 2024 quarter’s sales forecast for BYDDY is $37.28B with a range of $35.46B to $39.70B. The previous quarter’s sales results were $27.49B. BYDDY beat its sales estimates 0.00% of the time in past 12 months, while its overall industry beat sales estimates 56.01% of the time in the same period. In the last calendar year BYDDY has Preformed in-line its overall industry.

While we have been seeing pretty good momentum in BYD recent share price movement, there are some positive drivers and challenges that we need to also consider carefully.

Key Positive Drivers For BYD

Market Expansion: BYD's aggressive international growth, particularly in Europe and emerging markets, likely boosted sales. New market entries or partnerships could enhance revenue.

EV Demand: Continued global shift toward EVs, supported by government policies and subsidies (e.g., China, EU), may have driven volume growth.

Technological Innovation: Launch of new models with advanced battery tech (e.g., Blade Battery) or autonomous features could differentiate BYD in a competitive market.

Production Capacity: Expanded manufacturing facilities might have increased output, meeting higher demand and improving economies of scale.

Battery Business Growth: Rising demand for EVs and energy storage solutions may have bolstered BYD’s battery segment, diversifying revenue streams.

Potential Challenges

Competition: Intensifying rivalry from Tesla, NIO, and traditional automakers entering the EV space might pressure margins or market share.

Supply Chain/Costs: Fluctuations in lithium prices or supply chain disruptions (e.g., geopolitical issues) could impact profitability.

Subsidy Reductions: Potential phase-out of EV incentives in China or key markets might dampen sales growth.

Macroeconomic Factors: A slowing Chinese economy or unfavorable currency exchange rates could affect consumer spending and international revenue.

Financial Considerations

• Margins: Focus on net profit margins to assess cost management amid R&D investments and raw material costs.

• Debt Levels: High leverage from expansion efforts could increase interest expenses, though prudent financial management might mitigate risks.

Seasonality & Sentiment

• Q4 typically benefits from year-end promotions, possibly amplifying sales. Positive consumer sentiment toward EVs and brand loyalty might further support results.

Technical Analysis - Exponential Moving Average (EMA)

From the technical, we can see that BYD have been making a very consistent daily uptrend over the past week though we can see sideway trading coming, RSI is now in the overbought region and this signal strong momentum in its share price.

We could be seeing the BYD bulls continue to build the daily uptrend expansion, and there might be challenges as the focus now is on Tesla EV in China, though BYD EV is gaining ground in other regions.

We need to watch how investors sentiment and also the buying demand would be building up.

Summary

If BYD successfully navigated competitive and macroeconomic headwinds while capitalizing on market expansion and innovation, Q4 2024 earnings likely reflect robust growth. However, investors should review official reports for metrics like revenue growth, profit margins, and guidance. Key areas to watch include international sales performance, battery division contributions, and management’s outlook on 2025 trends.

Appreciate if you could share your thoughts in the comment section whether you think BYD would be able to provide a better-than-expected earnings and the momentum of its share price continue.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.