SINGAPORE - VinFast Auto Ltd. (NASDAQ:VFS) shares gained 4.3% after the Vietnamese electric vehicle manufacturer reported better-than-expected third-quarter earnings, despite missing revenue estimates.
The company posted an adjusted loss of $0.23 per share for Q3, beating analyst expectations of a $0.28 per share loss. Revenue came in at $511.62 million, falling short of the $528.09 million consensus estimate but representing a 49.3% increase YoY.
VinFast delivered 21,912 electric vehicles in Q3, up 115% YoY and 66% sequentially. The company said it's on track to meet its 80,000-vehicle delivery target for 2024.
"Q3'24 was in line with our internal forecast, driven by an acceleration in our top line and an improvement in profitability as gross loss and net loss narrowed significantly," said CFO Lan Anh Nguyen.
Gross margin improved to -24% from -62.7% in Q2, while net loss decreased 29.4% sequentially to $550 million.
VinFast became the top-selling automotive brand in Vietnam in September and October. The company is expanding globally, recently starting VF (NYSE:VFC) 9 deliveries in North America and entering new markets like Indonesia and the Philippines.
To support growth, VinFast announced plans for a new factory in Vietnam with a 300,000 EV annual capacity. The company also secured up to $3.5 billion in potential funding from its founder and Vingroup through 2026.
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