NIO Earnings Beat Estimates. Why the Stock Is Dropping
NIO Inc. stock was dropping on Friday after the electric vehicle maker reported widening losses and issued soft guidance as it struggles to keep up in a bruising price war.
The Chinese company’s American depositary receipts fell 4.5% to $4.5 in Friday trading.
NIO reported a net loss of 7.12 billion Chinese yuan ($974 million), widening 32.5% from a year ago, on revenue of 19.7 billion yuan ($2.70 billion). Analysts were expecting a loss of $985 million on revenue of $2.79 billion, according to FactSet consensus estimates.
Guidance also looked soft. NIO said it expects to deliver between 41,000 and 43,000 vehicles over the current quarter. It’s predicting revenue of between $1.69 billion and $1.76 billion—the midpoint of those figures is well below the $2.48 billion that analysts were forecasting.
The below-par earnings appeared to be dragging down NIO’s rivals, too. Li Auto slid 1.4%, and XPeng Inc. fell 1.2%.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Most Discussed
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10