EHang (NASDAQ:EH) Posts Earnings Results, Beats Estimates By $0.01 EPS

EHang (NASDAQ:EH) issued its quarterly earnings data on Tuesday. The company reported ($0.12) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.13) by $0.01, reports. The business had revenue of $11.46 million for the quarter, compared to analysts’ expectations of $16.50 million. EHang had a negative return on equity of 32.73% and a negative net margin of 74.74%.

Here are the key takeaways from EHang’s conference call:

• Negative Sentiment: EHang withdrew its 2026 revenue guidance of RMB 600 million, citing uncertainty around evolving regulations and the timing of domestic passenger-carrying commercial approvals, particularly in Hefei.
• Neutral Sentiment: Q2 revenue rose 203% sequentially to RMB 77.9 million but declined 31% year over year due to lower EH216-series sales. Gross margin remained broadly stable at 61.2%, while adjusted operating and net losses improved from Q1.
• Positive Sentiment: The company delivered 35 EH216-S units and one VT-35 in Q2, expanded its presence to 23 countries, and expects Thailand to receive an experimental flight permit in Q3 and a commercial operations certificate by year-end, with meaningful EH216 deliveries targeted for 2027.
• Positive Sentiment: EHang is diversifying beyond passenger transport into logistics, firefighting, and aerial media; aerial media revenue increased more than 270% year over year, while non-passenger revenue is expected to grow in the second half as formation-drone and firefighting deliveries increase.
• Positive Sentiment: Management reported RMB 929.4 million in cash, cash equivalents, and investments and is implementing organizational streamlining, AI adoption, and tighter spending controls, while maintaining investment in core R&D, safety, and overseas commercialization.

EHang Trading Down 0.4%

Shares of EH traded down $0.02 during mid-day trading on Monday, reaching $4.49. 655,210 shares of the company’s stock traded hands, compared to its average volume of 816,584. The stock’s 50-day moving average is $5.59 and its two-hundred day moving average is $8.67. The stock has a market cap of $337.29 million, a P/E ratio of -7.24 and a beta of 1.19. EHang has a 12 month low of $4.42 and a 12 month high of $20.20. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.84 and a quick ratio of 1.65.

EHang declared that its board has approved a share repurchase plan on Monday, June 8th that allows the company to buyback $0.00 in outstanding shares. This buyback authorization allows the company to reacquire shares of its stock through open market purchases. Shares buyback plans are typically an indication that the company’s board believes its stock is undervalued.

Analysts Set New Price Targets

Several research firms recently issued reports on EH. Zacks Research lowered EHang from a “hold” rating to a “strong sell” rating in a research report on Monday, July 13th. Dbs Bank cut EHang from a “buy” rating to a “hold” rating in a research note on Friday. The Goldman Sachs Group cut EHang from a “buy” rating to a “neutral” rating and set a $7.30 price objective for the company. in a research note on Tuesday, July 14th. Morgan Stanley restated an “overweight” rating on shares of EHang in a research note on Thursday, July 9th. Finally, Wall Street Zen cut EHang from a “hold” rating to a “sell” rating in a research note on Saturday, June 13th. One investment analyst has rated the stock with a Buy rating, three have assigned a Hold rating and four have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Reduce” and a consensus target price of $7.18.

Institutional Trading of EHang

Several hedge funds and other institutional investors have recently bought and sold shares of EH. Legal & General Group Plc raised its stake in shares of EHang by 171.7% during the 2nd quarter. Legal & General Group Plc now owns 3,380 shares of the company’s stock valued at $59,000 after buying an additional 2,136 shares during the last quarter. Daiwa Securities Group Inc. increased its stake in EHang by 47.6% during the 4th quarter. Daiwa Securities Group Inc. now owns 4,816 shares of the company’s stock worth $63,000 after buying an additional 1,553 shares in the last quarter. Advisory Services Network LLC acquired a new position in shares of EHang during the 3rd quarter worth approximately $117,000. JPMorgan Chase & Co. boosted its holdings in shares of EHang by 10.1% during the 2nd quarter. JPMorgan Chase & Co. now owns 7,292 shares of the company’s stock worth $127,000 after purchasing an additional 671 shares during the last quarter. Finally, Virtu Financial LLC acquired a new position in shares of EHang during the 4th quarter worth approximately $183,000. Institutional investors own 94.03% of the company’s stock.

About EHang

EHang Holdings Limited is a China-based technology company specializing in the development and manufacturing of autonomous aerial vehicles (AAVs) for passenger transportation, logistics, and other commercial applications. Established in 2014 and listed on NASDAQ under the ticker EH in 2019, EHang focuses on delivering turnkey solutions that integrate hardware, flight control systems and a cloud-based operating platform. Its flagship products include the EH216 series passenger AAV and the Falcon series unmanned aerial vehicles, designed to support urban air mobility, aerial filming, emergency response and short-range cargo delivery.

The company’s business model encompasses research and development, manufacturing, certification support, and operations services.