Nio Inc. (NYSE: NIO) released its Q3 2021 earnings on Tuesday, November 9, 2021, after markets close.
What to look for
The electric vehicle industry is ready to release earnings over the coming weeks. Already Nio’s rival BYD has reported earnings, and it posted a 27.5% drop in profits. For October, the company delivered 3,667 vehicles which is a 27.5% YoY. The decline in units delivered results from production volume reduction because of upgrades and restructuring of production lines and measures for introducing new products from September 28, 2021, to October 15, 2021. At the end of October, the company's cumulative deliveries of ES6, ES8, and EC6 were 145,703.
Earnings: Stockearning’s Estimated EPS for Q3 2021 was net loss per American Depositary Share of $0.28 and non-GAAP EPS was $0.06. Historical EPS Performance shows that over the past 12 quarters, the company has topped estimates thrice (25%), missed once (8%), and met estimates once (8%). In the second quarter, the company reported a loss of $0.07 per share, and in Q3 2020, the company had a loss of $0.14 per share.
Revenue: The company’s revenue was $1.53 billion, representing a 116.5% increase YoY. In the second quarter, the company reported revenue of $1.308 billion, reflecting a 127.2% YoY growth. In addition, vehicles sales were $1.225 billion, a 127% increase.
Stock movement: Nio stock has been DOWN 7 times out of the last nine quarters after the earnings release. So, the historical price reaction suggests a 77% probability of the share price going DOWN once NIO releases Q3 2021 earnings. According to the Stockearning algorithm, the predicted first-day move is 10%, while the predicted move on the seventh day is 20%.
What analysts are saying
Bernstein analyst Eunice Lee commenced coverage on Nio Stock with a $45 price target and a "Hold" rating as she initiated coverage on the EV sector in China. She stated that "EVs are the future if the Chinese autos landscape." The analyst said that although the company's battery swapping tech and offerings are attractive, she is concerned about the competition experienced in the industry.
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