- NIO Inc.’s fourth-quarter revenue forecast ranges between 19.68 billion yuan and 20.38 billion yuan, below the estimated 22.5 billion yuan.
- Projected deliveries for the fourth quarter are between 72,000 to 75,000 vehicles, missing the estimated 77,955 vehicles.
- For the third quarter, NIO reported revenues of 18.67 billion yuan, slightly down by 2.1% year-over-year, and below the estimated 19.17 billion yuan.
- The gross margin improved to 10.7% compared to 8% year-over-year, slightly above the estimate of 10.6%.
- NIO achieved deliveries of 61,855 vehicles in the third quarter, a 12% year-over-year increase, though just shy of the projected 62,053.
- Vehicle sales totaled 16.70 billion yuan, a 4.1% decrease year-over-year, under the estimated 17.24 billion yuan.
- The vehicle margin was reported at 13.1%, up from 11% year-over-year, matching the estimate.
- Adjusted operating loss stood at 4.59 billion yuan, an 8.3% increase year-over-year, but slightly better than the estimated loss of 4.64 billion yuan.
- Total operating expenses amounted to 7.25 billion yuan, witnessing a 14% year-over-year rise, and exceeding the estimate of 7.18 billion yuan.
- An adjusted net loss of 4.41 billion yuan was reported, slightly above the estimated loss of 4.25 billion yuan.
- Analyst recommendations consist of 21 buys, 11 holds, and 1 sell.
NIO on Smartkarma
Analysts on Smartkarma, like Eric Wen, have been closely monitoring NIO Inc. (NIO US) and recently published a report titled “[NIO Inc. (NIO US, SELL, TP US$1) Target Price Change]: Who Is Going to Give in a Slowing EV Market?“. In this report, Wen provides a bearish outlook on NIO, maintaining a SELL rating and raising the target price to US$1. The analysis highlights NIO Motors’ in-line results with improved gross margins, attributed to better OPEX control. Despite the positive performance in gross margins, Wen suggests a cautious stance amidst a slowing EV market.
Wen’s report emphasizes NIO Motors’ second-quarter results, noting the top-line performance and operating losses to be in-line with expectations. The report also mentions the narrower non-GAAP operating loss and GAAP net loss compared to estimates. The raised target price reflects the analyst’s view on the company’s operational expenses control. Overall, the analyst sentiment leans towards a bearish outlook on NIO’s future performance in the evolving electric vehicle sector.
A look at NIO Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
NIO Inc., a company that manufactures and sells electric vehicles and parts, is seen to have a promising long-term outlook according to Smartkarma’s Smart Scores. With a strong score in Growth, Resilience, and Momentum, NIO appears poised for continued expansion and market success. While the Value and Dividend scores are not as high, the company’s positive ratings in growth potential, resilience in the face of market challenges, and momentum in performance indicate a bright future ahead.
Overall, NIO’s ability to drive growth, demonstrate resilience, and maintain momentum bodes well for its standing in the electric vehicle sector. Investors may find NIO to be an appealing prospect for long-term investment considering its favorable Smart Scores in key areas essential for sustainable growth and success in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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