Will Nio's Sagging Stock Get a Lift From Earnings? A Q4 Preview

Benzinga2021-02-27

Nio Inc – ADR (NYSE:NIO) shares are in bear market territory, having fallen over 27% from a recent high of $64.60 on Feb.10. The pullback came amid broader market weakness, as investors rotated out of the tech and related sectors in droves.

The sagging stock has an upcoming catalyst in the form of its fourth-quarter earnings report, which is due Monday, after the close.

Consensus Call For Nio's Q4: Nio is expected to report a narrower fourth-quarter loss of 7 cents per share on revenues of $1.01 billion, according to consensus estimates.

In the same period last year, the company reported a loss of 39 cents per share and revenues of $406.99 million, and in the preceding third quarter, revenues were at $666.6 million and the non-GAAP loss per share was 12 cents.

Nio, meanwhile, guided to fiscal-year 2020, fourth-quarter revenues to $921.8 million-$947.9 million.

Q4 Deliveries: Nio confirmed in early January that it delivered 17,353 vehicles in the fourth quarter, a 111% year-over-year growth.

The momentum accelerated further in 2020. January deliveries climbed over 350% to 7,225 vehicles.

Related Link: China EV Updates: Nio Tests New Power Swap Station, XPeng's Travel Statistics, Geely, Baidu Make Progress On JV, Xiaomi Downplays Rumors

Nio's Forward Outlook: Nio is operating in a market that presents a huge opportunity.

Electric vehicle penetration, which is currently at 3% of global new vehicle sales, will increase to 50% plus over the next decade. This presents outsized opportunities for EV-first automakers, Loup Venture's Gene Munster said in a recent note. China is a crucial part of the global EV growth story.

Nio has been proactively pushing ahead in expanding its market share. In addition to the three commercial vehicle models it currently sells, the company unveiled its first EV sedan, named ET7 at Nio Day, Jan. 9.

The event also saw the rollout of several new products and offerings, including its new battery-swap technology and autonomous driver assistance system-as-a-service, or ADaaS.

Competition is getting intense, with more players entering the domestic EV market. Incidentally, Nio is also nurturing global ambitions and has hinted at exports to Europe.

Nio Stock: After Nio's 1,110% advance in 2020, the stock began the new year on a solid footing. The stock raced to an all-time high of $66.99 immediately after Nio Day. Since then, the stock has seen extreme volatility.

The broader market weakness has exerted further pressure on the stock, dragging it down to a new low of $41.66 earlier this week.

Nio shares are currently trading at a price/sales ratio of around 28.5 compared to bigger rival Tesla Inc's (NASDAQ:TSLA) 23.3.

NIO Price Action: At last check, Nio shares were up 0.47% at $47.03.

Related Link: Nio Analyst Sees Meaningful Tailwinds For EV Brand's Sales Volume

(Photo: Nio)

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Comments

  • The Knight
    2021-03-02
    The Knight
    In short run, the stocks is under pressure due to  the reduction in government subsidies,               increased competition from other EV players,      plans for manufacturing plant that require high    Capex and etc. 
  • LemonKnight
    2021-03-01
    LemonKnight
     Im waiting 4 u
  • LEEQX
    2021-03-01
    LEEQX
    Interesting 
  • RC_ADRIC
    2021-03-01
    RC_ADRIC
    Like and comment
  • Mccoy
    2021-02-28
    Mccoy
    Buy into the business. Keep the stocks for long
  • kuppi
    2021-02-28
    kuppi
    Nio price likely to go up soon
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