NIO Inc. NIO incurred a third-quarter 2024 loss per American Depositary Share (ADS) of 36 cents, wider than the Zacks Consensus Estimate of a loss of 32 cents. The company had reported a loss of 37 cents in the year-ago quarter. This China-based electric vehicle maker posted revenues of $2.66 billion, which missed the Zacks Consensus Estimate of $2.70 billion. The top line declined 2.1% from the corresponding quarter of 2023.

NIO Inc. Price, Consensus and EPS Surprise

NIO Inc. price-consensus-eps-surprise-chart | NIO Inc. Quote

Key Takeaways

NIO delivered 61,855 vehicles in the third quarter, up 11.5% year over year, including 832 vehicles from the newly launched ONVO brand. Revenues generated from vehicle sales amounted to $2.38 billion, down 4.1% year over year owing to competitive pricing pressures. Other sales of $281.6 million rose 19.2%.

Gross profit came in at $286 million, up 31.8% from the year-ago quarter, thanks to decreased cost of sales. Gross margin was 10.7%, up from 8%. Vehicle margin in the reported quarter climbed to 13.1% from 11% in the third quarter of 2023 due to lower material cost per unit.

Research & development costs amounted to $472.9 million, which increased 9.2% year over year. Selling, general & administrative costs were $585.5 million, up 13.8% year over year. Loss from operations widened to $746.3 million due to higher operating costs. As of Sept. 30, 2024, cash and cash equivalents totaled $3.39 billion and long-term debt amounted to $1.6 billion.

For fourth-quarter 2024, NIO projects deliveries in the range of 72,000-75,000 vehicles, implying a rise of 43.9-49.9% year over year. Revenues are estimated between $2.8 billion and $2.9 billion, implying a rise of 15-19.2% year over year.

NIO currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Releases

XPeng’s XPEV third-quarter 2024 ADS loss per share narrowed to 27 cents from the year-ago quarter’s loss of 62 cents. Total revenues rose to $1.44 billion from $1.17 billion reported in the corresponding quarter of 2023. Vehicle margin rose to 8.6% against negative 6.1% for the same period of 2023. Vehicle margins also improved from 6.4% recorded in the second-quarter of 2024. As of Sept. 30, 2024, XPeng’s cash and cash equivalents totaled $1.5 billion and long-term debt at $908 million.

For the fourth quarter of 2024, XPeng expects vehicle deliveries in the range of 87,000-91,000, suggesting a rise of 44.6-51.3% year over year. Total revenues are expected to rise 17.2-24.1% year over year.

Li Auto’s LI third-quarter 2024 ADS earnings per share came in at 52 cents, higher than the year-ago quarter’s 45 cents. Total revenues rose to $6.1 billion from $4.75 billion reported in the corresponding quarter of 2023. Revenues from vehicle sales totaled $5.9 billion, up 22.9% year over year due to strong growth in deliveries. Vehicle margin rose to 20.9% compared with 21.2% for the same period of 2023. Vehicle margins also improved from 18.7% recorded in the second-quarter of 2024.  As of Sept. 30, 2024, Li Auto’s cash and cash equivalents totaled $11 billion and long-term debt at $1.13 billion.

For the fourth quarter of 2024, Li Auto expects vehicle deliveries in the range of 160,000-170,000, suggesting a rise of 21.4-29% year over year. Total revenues are expected to rise 3.5-10% year over year.

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