China-based EV maker misses revenue estimates for a 4th-straight quarter, but Q3 outlook is above forecasts
Shares of Nio Inc. sank Tuesday, after the China-based electric-vehicle maker reported second-quarter results that missed expectations but provided an upbeat revenue outlook for the current quarter.
The stock NIO, -1.18% dropped 4.5% toward a six-week low in premarket trading. That put the stock on track for the 12th one-day post-earnings loss following the past 15 quarterly reports.
The Shanghai-based company reported a net loss for the quarter to June 30 that widened to RMB5.79 billion ($798.9 million), or RMB3.70 per American depositary share, from RMB2.26 billion, or RMB1.68 per ADS, in the same period a year ago.
Excluding non-recurring items, adjusted per-ADS losses were RMB3.28, missing the FactSet loss consensus of RMB2.96.
Total revenue fell 14.8% to RMB8.77 billion ($1.21 billion), below the FactSet consensus of RMB9.16 billion.
Vehicle sales of RMB7.19 billion were down 22.1% from the sequential first quarter and 24.9% from a year ago, due primarily to lower average selling prices and decreases in delivery volume.
Cost of sales fell less than revenue, down 3.0%, as gross margin contracted to 1% from 13% last year, mainly because of increased sales of lower-margin used EVs.
Deliveries declined 6.1% to 23,520 vehicles. For July, the company delivered 20,462 EVs, up 103.6% from a year ago.
“Attributed to the product transition based on the NT2.0 Platform, coupled with the expansion of our power network and the strengthening of our sales capabilities, we expect a solid growth in vehicle deliveries in the second half of 2023,” said Chief Executive William Bin Li.
For the third quarter, the company said it expects total revenue of between RMB18.90 billion and RMB19.52 billion, up from revenue of RMB13.00 billion a year ago and above the current FactSet consensus of RMB18.03 billion.
Deliveries are expected to be between 55,000 and 57,000 EVs, compared with deliveries of 31,607 EVs a year ago.
The stock has run up 43.1% over the past three months through Monday, while the iShares MSCI China exchange-traded fund MCHI slipped 0.1% and the S&P 500 index SPX gained 5.4%.