/nio_es8_front-5bfc2ea3c9e77c0051805ce8.jpg "What to Look For From NIO 1")
Key Takeaways
- Analysts estimate EPS of -RMB0.90 (-$0.14) vs. -RMB0.98 in Q3 FY 2020.
- Cars bought, already introduced, rose at a strong tempo YOY.
- Income is predicted to rise at a wholesome tempo, however slower than the earlier three quarters.
NIO Inc. (NIO) has quickly expanded its electrical automobile (EV) gross sales over the previous few years, serving to the China-based automaker to sharply slender its monetary losses within the newest reported quarter. However NIO now’s going through new challenges. Gross sales have been slowing in latest quarters, and its automobile deliveries in October had been down greater than 65% in comparison with September and practically 28% in comparison with the identical interval a 12 months in the past. NIO stated the dramatic slowdown in deliveries was attributable to a number of components, together with upgrades to its manufacturing strains, preparations for brand new merchandise, and ongoing provide chain points.
Buyers are more likely to deal with how these developments are affecting NIO’s latest monetary efficiency when the corporate studies earnings on Nov. 9, 2021 for Q3 FY 2021. Analysts anticipate the EV maker’s loss per share to slender in comparison with the year-ago quarter as income continues to develop at a fast, albeit decelerating tempo. Word that NIO shares referred to all through this story characterize NYSE-listed American depositary shares (ADS) with the ticker NIO.
Buyers are additionally intently watching the variety of cars NIO sells or delivers. The electrical carmaker reported its third-quarter automobile deliveries firstly of October. Whole automobile deliveries got here in above analysts’ expectations, however grew at a decelerating tempo in comparison with latest quarters.
Shares of NIO have dramatically underperformed the broader market over the previous 12 months. The inventory had been principally outperforming roughly from early November 2020 by late February 2021. However it has principally lagged the market for the reason that starting of March 2021. NIO’s shares have supplied a complete return of -0.1% over the previous 12 months, properly beneath the S&P 500’s whole return of 33.8%.
Supply: TradingView.
NIO Earnings Historical past
NIO reported Q2 FY 2021 earnings and income that beat analysts’ expectations. The corporate reported a loss per share of RMB0.42, lower than half the loss per share reported within the year-ago quarter. Income rose 127.2% 12 months over 12 months (YOY), decelerating from the fast tempo set within the earlier quarter. NIO stated that it was nonetheless going through uncertainties relating to its international provide chain, however that it was working intently with its companions to enhance general manufacturing capability.
In Q1 FY 2021, NIO missed its earnings estimates however beat on income. The EV maker reported a loss per share of RMB3.14, practically double the loss per share posted within the year-ago quarter. Income rose 481.8% YOY, its quickest tempo for the reason that second quarter of FY 2019. NIO stated that product demand continued to be sturdy in the course of the quarter however that its provide chain was nonetheless going through important challenges associated to the worldwide semiconductor scarcity.
Analysts anticipate one other loss per share as income grows at a strong, albeit slowing tempo. NIO is predicted to publish a loss per share that’s barely smaller in comparison with the year-ago quarter however greater than double the loss per share in comparison with the earlier quarter. Income is predicted to rise 104.0% YOY, its slowest tempo for the reason that first quarter of FY 2020.
| NIO Key Stats | |||
|---|---|---|---|
| Q3 FY 2021 | Q3 FY 2020 | Q3 FY 2019 | |
| Earnings Per Share (RMB) | -0.90 (estimate) | -0.98 | -2.48 |
| Income (RMB, billions) | 9.2 (estimate) | 4.5 | 1.8 |
| Cars Bought | 24,439 (precise) | 12,210 | 4,800 |
Supply: Seen Alpha
The Key Metric
As talked about above, buyers are additionally watching the variety of cars NIO sells every quarter. The variety of cars bought can also be known as automobile deliveries by the corporate. NIO generates some income from the opposite services it gives, however the majority of income is derived from automobile gross sales. The corporate makes deliveries of three forms of autos: the ES8, the corporate’s six-seater or seven-seater flagship premium sensible electrical SUV; the ES6, the corporate’s five-seater high-performance premium sensible electrical SUV; and the EC6, the corporate’s five-seater premium electrical coupe SUV. The variety of automobile deliveries gives a sign of the demand for NIO’s autos in addition to the corporate’s capacity to scale manufacturing. For NIO, that capacity is difficult by the worldwide chip scarcity and different provide chain constraints.
NIO’s vehicle gross sales have considerably ramped up over the previous few years. In FY 2018, the corporate bought a complete of 11,350 autos. That quantity rose 81.2% by the top of FY 2019. The tempo of development accelerated to 112.6% in FY 2020 as NIO bought roughly 43,730 autos final 12 months. The acceleration development continued into the primary quarter of FY 2021 with automobile gross sales increasing 422.7% YOY. Development slowed to 111.9% YOY in Q2 FY 2021 and once more to a tempo of 100.2% YOY within the third quarter. Nevertheless, whole gross sales in Q3 are greater than double the overall bought in all of FY 2018. For full-year FY 2021, analysts anticipate the EV maker to promote a complete of 92,840 cars, which might be greater than double the quantity bought within the earlier 12 months.