NIO Q3 Loss Narrower Than Expected Due to Higher Deliveries
NIO Inc. NIO incurred a loss per American Depositary Share of 37 cents in the third quarter of 2023, narrower than the Zacks Consensus Estimate of a loss of 43 cents. However, the reported loss is wider than the year-ago period's reported loss of 36 cents.
This China-based electric vehicle maker posted revenues of $2,613.3 million, which lagged the Zacks Consensus Estimate of $2,631.1 million but increased roughly 43% year over year due to higher delivery volumes.
NIO Inc. Price, Consensus and EPS Surprise
NIO Inc. price-consensus-eps-surprise-chart | NIO Inc. Quote
Key Details
NIO delivered 55,432 vehicles in the third quarter, up 75.4% year over year, including 37,585 SUVs and 17,847 sedans.
Revenues generated from vehicle sales amounted to $2,386.1 million, up 42.2% year over year. The increase in sales was mainly attributable to higher delivery volume. Other sales of $227.2 million rose 51.2%. Strong sales of used cars and car accessories and the provision of power solutions contributed to the growth.
Gross profit came in at $208.8 million, down 14.4% year over year. Vehicle margin in the reported quarter fell to 11% from 16.4% in third-quarter 2022 due to changes in product mix. Gross margin was 8%, down from 13.3% in the year-ago quarter.
Research & development and selling, general & administrative costs amounted to $416.5 million and $494.7 million, respectively, indicating a year-over-year increase of 0.6% and 29.7%.
As of Sep 30, 2023, cash and cash equivalents totaled $3,301 million and long-term debt amounted to $1,666 million.
For fourth-quarter 2023, NIO projects deliveries in the range of 47,000-49,000 vehicles, implying a 17.3-22.3% increase year over year. Revenues are estimated to be between $2,204 million and $2,289 million.
Zacks Rank & Key Picks
NIO currently carries a Zacks Rank #3 (Hold).
Some better-ranked players for investors interested in the auto space are Volvo VLVLY, Renault SA RNLSY and BYD Company Limited BYDDY, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings indicates year-over-year growth of 4.2% and 65.6%, respectively. The EPS estimate for 2023 and 2024 has increased 3 cents and 2 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for RNLSY’s 2023 sales and earnings indicates year-over-year growth of 4.5% and 128.1%, respectively. The EPS estimate for 2023 and 2024 has increased 15 cents and 2 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for BYDDY’s 2023 sales indicates year-over-year growth of 160.2%. The EPS estimate for 2023 and 2024 has increased 59 cents and 55 cents, respectively, in the past 60 days.
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