Xiaomi Q2 Earnings: Did the Results Meet Your Expectations?
Just now, Xiaomi released its second-quarter financial results. Revenue for the quarter came in at RMB 108.922 billion, above the RMB 108.325 billion analyst consensus. Gross profit was RMB 21.609 billion, below the expected RMB 21.883 billion, while adjusted net profit came in at RMB 6.22 billion, slightly below the RMB 6.314 billion estimate. $XIAOMI-W(01810)$
Breaking down the results by business, smartphone revenue reached RMB 42.119 billion in the second quarter, slightly above the RMB 41.099 billion estimate, while gross profit was RMB 3.599 billion, ahead of the RMB 3.396 billion expectation. Electric vehicle revenue came in at RMB 24.896 billion, slightly below the RMB 24.904 billion estimate, while gross profit was RMB 4.792 billion, significantly below the expected RMB 5.25 billion.
Analysts noted that Xiaomi's strategy of gaining market share in the smartphone business makes it more vulnerable to the ongoing memory shortage. However, the smaller-than-expected decline in profit provided some reassurance to the market. Going forward, the market will monitor whether Xiaomi can effectively manage rising costs. Meanwhile, the company's ongoing transition into electric vehicles is putting additional pressure on profitability.
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- YumZoay·08-18 19:42Revenue beat is nice, but that EV gross profit miss is the part I care about more. Smartphone share gains help, yet margins still look squeezedLikeReport