08:52 AM EDT, 05/20/2024 (MT Newswires) -- Li Auto's ( LI ) first-quarter earnings declined from a year earlier despite recording higher revenue, while the Chinese automaker delivered fewer vehicles on a sequential basis.

The company posted adjusted earnings of 1.21 renminbi ($0.17) per American depositary share for the March quarter, down from 1.35 renminbi a year ago. Three analysts polled by Capital IQ expected normalized EPS of 1.46 renminbi. Revenue advanced 36% to 25.63 billion renminbi, while six analysts estimated 27.41 billion renminbi.

Vehicle sales climbed 32% to 24.25 billion renminbi driven by higher deliveries, partially offset by lower average selling prices due to a "different product mix" between the two quarters, according to the company. Sales fell nearly 40% from the prior three-month period, impacted by seasonal factors related to the Chinese New Year holiday and a lower-than-expected order intake.

Li Auto ( LI ) delivered 80,400 vehicles in the first quarter, reflecting a roughly 53% annual jump, but were down from 131,805 unit deliveries in the preceding quarter. The automaker's Nasdaq-listed shares decreased 4.2% in premarket activity.

"Despite the rollout of a new model, product iterations, and pricing adjustments, our first-quarter financial results remained solid," Chief Financial Officer Tie Li said in a statement. "While our first-quarter deliveries fluctuated sequentially, we remain confident that our deliveries will continue to grow in the coming quarters."

Gross margin stood at 20.6%, compared with 20.4% the year before. Operating expenses rose to 5.87 billion renminbi from 3.42 billion renminbi in the 2023 quarter, according to the company.

For the second quarter, the EV maker expects revenue to be in a range of 29.9 billion renminbi to 31.4 billion renminbi, representing annual growth of 4.2% to 9.4%. Five analysts polled by Capital IQ expect revenue of 36.22 billion renminbi. Li Auto ( LI ) anticipates delivering between 105,000 and 110,000 vehicles for the quarter, having distributed 25,787 units in April.

"In line with this outlook, we have maintained the pace of our investments in research and development and sales and servicing network," according to Tie Li. "We will continue to rigorously evaluate and streamline our operations while being fully centered on users and products, driving progress toward our long-term goals and strategic vision amidst a competitive market."

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