NIO's Net Loss Likely Narrowed for Second Quarter

Dow Jones08-31 15:54
 
 

NIO is scheduled to report results for the second quarter on Tuesday. Here is what you need to know:

 

NET LOSS: The Chinese automaker is expected to have booked a net loss of 558.4 million yuan, equivalent to $83 million, according to the consensus estimate of analysts polled by Visible Alpha. NIO reported a 5.14 billion yuan loss in the year-earlier period.

 

REVENUE: NIO's second-quarter revenue is estimated at 33.71 billion yuan, according to Visible Alpha, up from 19.01 billion yuan a year ago.

 

NIO's Hong Kong-listed shares fell 12% in the April-June period, with sentiment weighed by slowing sectorwide demand in China's market.

 

WHAT TO WATCH:

--SALES: The company delivered 107,658 units of cars in the second quarter, almost 50% higher than a year earlier, but that missed the company's guidance of 110,000 units-115,000 units. Investors will look to see if revenue missed guidance as well.

--MARGIN: NIO's vehicle margin was 18.8% in the first quarter and gross margin was 19%. Investors will watch if the company achieved a gross margin of 20% during the quarter to examine its profitability.

--GUIDANCE: NIO typically releases its third-quarter revenue and deliveries outlook with second-quarter results. Investors will watch for guidance to examine how NIO plans to cope with intense competition and slow demand in the domestic market.

 
 

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