Stock: 3 Things to Watch When Nio Reports Earnings

StarLuck
2022-09-02

*$NIO Inc.(NIO)$will report Q2 earnings on Sept. 7.

* Analysts are expecting revenue of $1.39 billion.

* Shares of NIO stock are down over 40% year-to-date.

Nio stock is in full focus, as the company is set to announce second-quarter earnings on Wednesday, Sept. 7 before the market open. The Chinese automaker also announced its August deliveries on Thursday, which was 10,677 vehicles. Of the 10,677 vehicles, 7,551 of them were premium smart electric SUVs, while the remaining 3,126 were premium smart electric sedans.

Deliveries rose 81.6% year-over-year (YOY) and were higher by 6% compared to July’s delivery figure of 10,052 vehicles. Since the beginning of the year, cumulative deliveries have totaled 71,556 vehicles, up 28.3% YOY.

Meanwhile, both $Li Auto(LI)$and $XPeng Inc.(XPEV)$delivery figures declined month-over-month.

The electric vehicle (EV) company has experienced a slew of headwinds this year, such as supply chain inefficiencies, increases in the price of raw materials, delisting fears and Covid-19 lockdowns. Coronavirus cases have experienced a surge in China. Recently, the large city of Chengdu went into lockdown, while Shanghai enacted coronavirus restrictions. Increased extended lockdowns in major hub cities could continue to exasperate supply chain issues for Nio.

However, NIO stock shareholders are hopeful that Q2 earnings will bring good news.

$NIO Inc.(NIO)$Stock: 3 Metrics to Watch For Earnings

For the quarter, analysts are expecting revenue of$1.39 billion, representing a YOY increase of 5.8%. Among six analysts, the low revenue estimate comes in at $1.35 billion, while the high is $1.42 billion. During Q2 of 2021, Nio reported revenue of$1.3 billion, which was attributed to the delivery of 21,896 vehicles. In Q2 of 2020, the company delivered 10,331 vehicles.

Next, investors will want to watch out for earnings per share (EPS). All seven Q2 NIO EPS estimates are negative, so a positive EPS would likely send NIO soaring. The consensus estimate for EPS clocks in at a loss of 17 cents. The low estimate is a loss of 24 cents, while the high estimate is a loss of four cents. A year ago, the company reported an EPS loss of seven cents.

Finally, investors will want to keep an eye on third-quarter and full-year guidance. For Q3, analysts expect revenue of $2.36 billion, which would represent YOY growth of 61.3%.

Meanwhile, Q3 EPS is expected to be a loss of 12 cents. For the full year, analysts expect revenue of $8.71 billion and an EPS loss of 58 cents.

@Daily_Discussion

@TigerStars

Q2 Earnings Season
A parade of earnings reports will expose how companies have contended with soaring inflation, shifts in consumer spending, and a volatile supply environment.
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