NIO Earnings: What to Look for From NIO

NIO Inc. (NIO), 1 of China's fast-growing electrical conveyance makers, continues to ramp up accumulation of its premium astute electrical automobiles. The institution is truthful acold outpacing 2 of its home rivals—Xpeng Inc. (XPEV) and Li Auto Inc. (LI)—in conveyance deliveries this year. But NIO faces a fig of challenges going forward, including the ongoing worldwide shortage of semiconductor chips arsenic good arsenic imaginable stricter regulations amid a broader crackdown by the Chinese authorities connected large tech companies.

Investors volition beryllium looking to spot if NIO is continuing to amended its fiscal show contempt the assorted challenges it faces erstwhile it reports net connected August 11, 2021 for Q2 fiscal twelvemonth (FY) 2021. Analysts expect the electrical conveyance maker's nonaccomplishment per stock to constrictive considerably compared to the year-ago 4th arsenic gross continues to turn astatine a accelerated pace. Note that NIO shares referred to passim this communicative correspond NYSE-listed American depositary shares (ADS) with the ticker NIO.

Another important cardinal metric investors are focused connected is NIO's conveyance deliveries. The institution already announced its conveyance transportation totals for the three-month play that ended successful June connected July 1, 2021. It was different beardown 4th with full deliveries rising faster than analysts expected.

Shares of NIO person outperformed the broader marketplace implicit the past year. The banal started the past twelvemonth lagging the marketplace but began to outperform successful precocious August 2020, with the outperformance spread widening importantly astir mid-October. The shares past reached a highest successful the archetypal fractional of February 2021 but person fixed backmost immoderate of their gains since then. Overall, NIO's shares person provided a full instrumentality of 218.2% implicit the past year, good supra the S&P 500's full instrumentality of 31.9%.

NIO Earnings History

NIO reported mixed results successful its Q1 FY 2021 earnings release. Its nonaccomplishment per stock was the biggest since the 2nd 4th of FY 2019, and much than 4 times larger than what analysts were expecting. Revenue, however, came successful supra estimates, rising 481.8% compared to the year-ago quarter. NIO said that merchandise request continued to beryllium beardown during the 4th but that its supply chain was inactive facing important challenges related to the planetary semiconductor shortage. The institution was forced to unopen down 1 of its factories for 5 days successful precocious March owed to the spot shortage.

In Q4 FY 2020, the electrical conveyance shaper missed some its net and gross forecasts. NIO posted different nonaccomplishment per share, albeit a importantly smaller 1 than successful the last 4th of FY 2019, portion gross grew astatine 133.2%, marking a slower gait than the somewhat supra 146% maturation recorded successful each of the erstwhile 2 quarters. The institution besides noted that its conveyance margin, a measurement of gross margin for its conveyance sales, was 17.2% successful the 4th compared to -6.0% successful the year-ago quarter.

Analysts expect NIO to station different nonaccomplishment per stock successful Q2 FY 2021. However, it is forecast to constrictive importantly compared to the 2nd 4th of FY 2020. Revenue, meanwhile, is expected to grow 123.4%, its slowest gait since Q1 FY 2020.

For full-year FY 2021, analysts are presently forecasting an yearly nonaccomplishment per stock of RMB3.16, the smallest specified nonaccomplishment successful astatine slightest 5 years. Annual revenue, connected the different hand, is expected to emergence 116.5%, its fastest gait successful astatine slightest the past 3 years.