- Xiaomi‘s operating profit for the second quarter reached 13.44 billion yuan, surpassing the estimated 10.43 billion yuan.
- The company invested 7.76 billion yuan in research and development, which was higher than the anticipated 7.18 billion yuan.
- Xiaomi‘s net income was recorded at 11.90 billion yuan, exceeding the forecasted 8.88 billion yuan.
- Adjusted net income stood at 10.83 billion yuan, slightly above the expected 10.23 billion yuan.
- The average selling price of Xiaomi smartphones was 1,073 yuan, which was lower than the estimated 1,105 yuan.
- Analyst recommendations show 51 buy ratings, 3 hold ratings, and 1 sell rating for Xiaomi.
Xiaomi on Smartkarma
Analysts on Smartkarma have provided varied insights on Xiaomi, offering different perspectives on the tech giant’s performance and market sentiment. John Ley, in a bullish outlook, highlights Xiaomi‘s upcoming Q2 earnings release as intriguing, with low volatility and a strong beat record. Gaudenz Schneider also leans bullish, focusing on strategic insights and top option trades within Xiaomi, showcasing diverse multi-leg option strategies. On the bearish side, John Ley raises concerns about potential overreach in sentiment and overvaluation in Xiaomi‘s option market, despite the company hitting record highs.
Meanwhile, Eric Wen discusses Xiaomi‘s financial performance driven by trade-in subsidy, noting strong market positioning but a high valuation. Amidst these analyses, diverse viewpoints offer investors a comprehensive view of Xiaomi‘s current market dynamics, performance, and potential risks to consider when evaluating investment decisions.
A look at Xiaomi Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Xiaomi‘s long-term outlook appears positive. With a strong Growth score of 5, Xiaomi is expected to experience robust expansion in the future, indicating potential for significant development and market share gains. Additionally, the company also demonstrates high Resilience with a score of 4, implying that Xiaomi is well-prepared to withstand economic uncertainties and industry challenges. This resilience could prove beneficial in maintaining stability and growth over the long term.
Despite a lower Dividend score of 1, suggesting limited dividend payouts to investors, Xiaomi‘s overall outlook remains promising due to its solid scores in Growth and Resilience. With a balanced combination of growth opportunities and a resilient business model, Xiaomi is positioned to capitalize on its market presence and innovative product offerings for sustained success in the long run.
Summary: Xiaomi Corporation is a global manufacturer of communication equipment, specializing in mobile phones, smartphone software, set-top boxes, and related accessories. With strong scores in Growth and Resilience, Xiaomi is poised for significant expansion and able to withstand market challenges, indicating a positive long-term outlook for the company.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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