How did XPEV's Q3 earnings surprise investors?

XPEV's Q3 earnings report exceeded investor expectations in several key financial metrics, reflecting the company's robust growth and market expansion efforts despite challenging industry conditions.

1. **Revenue Growth**: New Oriental's revenue for the fourth fiscal quarter of 2024 (Q4) increased by 32.1% year-over-year, reaching $1,136.7 million. This significant uptick, especially in light of the ongoing market uncertainties, surpassed market forecasts, indicating the company's diversified business segments are performing well.
2. **Segmental Performance**: Key business segments showed notable strength:
- The overseas test-prep and study consulting sectors grew by 18% and 17% respectively, in dollar terms, with an even more substantial increase of 23% and 23% in RMB terms.
- The adult and university students' segment expanded by 16% in dollar terms and 21% in RMB terms.
- New educational business initiatives reported a remarkable 50% increase in revenue, with a 57% rise in RMB terms.
3. **Financial Metrics**: Although net income decreased by 6.9% year-over-year to $27 million, non-GAAP net income fell by 40.5% year-over-year to $36.9 million, the company's overall financial position remains robust. New Oriental reported a healthy cash position with $4.9 billion in cash and cash equivalents, and ongoing share repurchase programs demonstrate confidence in its financial health.
4. **Operational Highlights**: The company's operational efficiency is improving, as evidenced by a 43.9% increase in net revenues for the full fiscal year 2024, reaching $4,313.6 million. Operating income for the full fiscal year 2024, rose by 84.4% reaching $350.4 million. Non-GAAP operating income for the full fiscal year 2024, increased by 69.0% reaching $472.9 million.
5. **Future Outlook**: New Oriental anticipates a substantial growth trajectory in its tourism-related business, projecting an expected revenue of approximately RMB1.2 billion for fiscal year 2025. The company's aggressive expansion plans, including a planned 20% to 25% increase in capacity for 2025, underscore its optimism about sustaining growth momentum.

In conclusion, while New Oriental faced a slight dip in net income, its robust revenue growth, strong financial position, and positive future outlook likely overshadowed investor concerns, leading to a positive market reaction to its Q4 earnings report.