VinFast Auto Ltd (NASDAQ:VFS) reported mixed results for the fiscal fourth quarter of 2024, as a surge of electric vehicle deliveries drove a stronger-than-expected top line amid profitability challenges.
The Vietnamese auto company reported revenue of $677.9 million, ahead of Street estimates of $659.3 million.
This was driven by EV deliveries of 53,139, up 143% quarter-over-quarter, and electric scooter deliveries of 31,170, up 65% from the previous quarter.
Wedbush analysts wrote that VinFast’s VF3 and VF5 models, both launched in mid-2024, had a significant impact on the company’s revenue, representing more than 60%.
These lower-priced offerings are part of VinFast’s strategy to reshape customer behavior and broaden its market appeal, they noted.
“VFS also launched a new ‘Green’ series fleet which is specifically tailored for transportation services with deliveries expected to start in Q2 2025 as the company looks to provide a full green mobility ecosystem while helping consumers get over the skepticism surrounding EVs,” they wrote.
The bottom line, however, fell short with VinFast reporting a loss per share of $0.54 greater than the $0.22 loss per share expected. Its net loss widened to $1.3 billion from $650 million for the year-ago period.
Wedbush noted that Non-GAAP gross margin plunged to negative 79.1%, compared with negative 24% in the prior quarter due to “a significant accounting charge for its EVs sold tied to its charging network to provide multiple years of free charging.”
VinFast reaffirmed its full-year 2025 guidance as new models coming to market are expected to spur demand while it looks to optimize its cost structure.
“Fiscal year 2025 delivery guidance of at least doubling its global deliveries as the company looks to drive significant sales growth with the launch of its affordable models and expanded product portfolio to expand its reach to new and emerging markets,” Wedbush believes.
The analyst noted that with approximately 5% of 2024 deliveries coming from North America, the company is well-positioned to navigate the current tariff landscape. It is focused on generating demand across key Southeast Asian markets, including Indonesia and the Philippines, while localizing its supply chain in these regions.
“While facing a difficult demand environment, VFS is taking strategic steps to generate stable demand for its entire portfolio while making further cost optimization efforts by localizing the supply chain to drive profitable growth over the coming years,” analysts wrote.
They maintained their ‘Outperform’ rating but lowered their price target to $6 from $8, citing “softness.”
VinFast’s US-listed shares fell around 5.1% on Friday morning.