09:03 AM EDT, 03/14/2025 (MT Newswires) -- Li Auto's ( LI ) fourth-quarter earnings fell year over year but revenue came in above market estimates, while the Chinese electric vehicle maker expects its sales to decline annually in the ongoing three-month period.

The company expects revenue to be in a range of 23.4 billion renminbi ($3.2 billion) to 24.7 billion renminbi ($3.4 billion) for the first quarter of 2025, representing an annual decline of 3.5% to 8.7%. The current consensus on FactSet is for sales of 35.13 billion renminbi. The automaker's Nasdaq-listed shares fell 4.2% in the most recent premarket activity.

"Moving forward, we remain committed to expanding our business and driving technological innovation while striving for financial excellence," Chief Financial Officer Tie Li said in a statement. "We aim to grow sustainably and steadily advance toward our long-term vision in this intelligent era, creating value for all our stakeholders."

For the December quarter, the EV maker reported adjusted earnings of 3.79 renminbi per American depositary share, down from 4.23 renminbi a year earlier. Three analysts polled by FactSet expected non-GAAP EPS of 4.38 renminbi. Revenue advanced to 44.27 billion renminbi from 41.73 billion renminbi, topping the Street's view for $43.55 billion renminbi.

Vehicle sales inclined 5.6% year over year to 42.64 billion renminbi, mainly driven by higher deliveries, partially offset by lower average selling prices primarily due to "different product mix" and changes in pricing strategy, the company said. Li Auto ( LI ) delivered 158,696 vehicles in the fourth quarter, reflecting a roughly 20% annual jump.

"Our record performance in the fourth quarter propelled our full-year deliveries to surpass the 500,000 milestone," Chief Executive Xiang Li said.

The company anticipates to deliver between 88,000 and 93,000 vehicles for the current quarter, having distributed 29,927 and 26,263 units in January and February, respectively. The guidance reflects year-over-year growth of 9.5% to about 16%.

Gross margin stood at 20.3% in the fourth quarter, down from 23.5% in the prior-year period, primarily due to a decrease in vehicle margin, according to the company. Operating expenses decreased to 5.27 billion renminbi from 6.75 billion renminbi last year.