NIO Stock Drops 6% in Morning Trading After Downbeat Outlook

Tiger Newspress2022-06-09

NIO stock drops 6% after downbeat outlook, steep drop in gross margin offset narrower-than-expected lossShares of NIO Inc. $(NIO)$ fell in morning trading Thursday, after the China-based electric vehicle maker reported a narrower-than-expected first-quarter loss and revenue that topped expectations, but a sharp contraction in gross margin and a downbeat outlook due to volatilities in the supply chain and vehicle delivery challenges resulting from the recent COVID-19 resurgence.

The net loss narrowed to RMB1.27 billion ($200.5 million), or RMB1.12 a share, from RMB4.95 billion, or RMB3.14 a share, in the year-ago period. Excluding nonrecurring items, the adjusted per-share loss was RMB0.79, beating the FactSet consensus of RMB0.94.

Total revenue grew 24.2% to RMB9.91 billion ($1.56 billion), above the FactSet consensus of RMB9.90 billion, with deliveries reaching a quarterly record of 25,768 vehicles.

Gross margin contracted to 14.6% from 19.5%, amid lower average selling prices due to changes in product mix, increased investment in power and service network and higher battery costs.

For the second quarter, NIO expects revenue of between RMB9.34 billion to RMB10.09 billion, below the FactSet consensus of RMB11.65 billion, with deliveries expected to decline to between 23,000 and 25,000 vehicles.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • Mhong
    2022-06-10
    Mhong
    Like and comment
  • SCLIEW
    2022-06-10
    SCLIEW
    666
  • Sunshinekim
    2022-06-10
    Sunshinekim
    Was doing better and then.....  here we go again!
  • luckyjas
    2022-06-09
    luckyjas
    Great ariticle, would you like to share it?
  • KLC
    2022-06-09
    KLC
    😯
  • KLC
    2022-06-09
    KLC
    Nio up
Leave a comment
14