(UPDATED) Nio Stock Earnings Preview: NIO expected to see QoQ decline in Q2 revenue
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get Premium without limits for only $9.99 for the first month
Access all our articles, insights, and analysts.
UNLOCK OFFER- Nio is estimated to report second-quarter earnings on Thursday, August 18.
- Li Auto reported a wider than expected net loss on Friday.
- Wall Street expects GAAP EPS of $-0.20 on $1.43 billion in sales.
UPDATE: Nio has shed 3% to trade down to $20.66 in the first half hour of trading on Tuesday. The Nasdaq is off 0.7% at the same time as the market enters a risk-off mode after poor US housing data emerged that sent traders selling risk and buying more hardy Dow stocks. The Dow index is up 0.2% at the start of Tuesday. Competitors Li Auto (LI) and Xpeng (XPEV) are down 4.8% and 4.5%, respectively. The Chinese EV sector is also selling off due to poor economic data out of that country. The Chinese government agreed to insure some real estate debt directly in a move seen as necessary to thwart a much larger collapse in that industry. More than 6,700 call contracts for the $21 strike price expiring this Friday have traded on Tuesday with the last price at $0.43.
Chinese EV superstar Nio (NIO) is expected to release second-quarter earnings (the quarter ending in June) sometime this week. Most estimates are for Thursday, August 18, but the release could come at any time.
Also read: Tesla Stock Deep Dive: Price target at $400 on China headwinds, margin compression, lower deliveries
Wall Street expects a GAAP loss of $-0.20 per share on revenue of $1.43 billion. This is the accepted conversion rate from -1.15 and 9.6 billion Chinese yuan, according to data from Refinitiv.
Nio earnings preview
Nio missed forecasts from analysts in the first quarter but only narrowly. For Q2, Wall Street is expecting an extremely low 10% gain in sales YoY, which should be easy to beat. There are worries over the extent to which covid-related shutdowns affected output at the Chinese EV automaker, which is why the consensus estimate is so low. Of the four analyst revisions to Q2 EPS, three were downward in nature. Nio posted $1.48 billion in sales during the first quarter, so the current forecast calls for a decline of $50 million.
For the full year, analyst consensus has EPS of -4.06 on 60.66 billion yuan, and their average price target is $36.31, well above Nio's current stock price of $21.30.
Nio delivered 10,052 vehicles in July, which was a 22% decline MoM from its June number. The decline was a result of supply chain mishaps involving the production of the ET7 and EC6 models. Management said they were well on their way to fixing the supply chain issues involving suppliers during the third quarter.
If there are any worries about Nio's upcoming earnings it has to do with Li Auto (LI). The competitor and EV manufacturer released earnings on Friday that missed earnings expectations. Despite delivering more than 28,600 vehicles in the quarter, management guided Q3 deliveries to between 27,000 and 29,000 deliveries. This means the 63% YoY global gain in EV adoption during the first half of the year, which was duly experienced by LI, is expected to fall flat in the second half.
Most of the alterations in price targets took place back in June, and news has been fairly quiet with Nio over the summer. HSBC raised its price target from $26 to $28. Mizuho lowered it from $55 to $48. Citi lowered its price target from $87 to $41.10, and Morgan Stanley lowered its target from $34 to $31. All four analyst teams have "buy" or "outperform" ratings on Nio stock.
Nio has been a popular stock among US hedge funds this year and last. Mutual Advisors sold 17% of its stake in Nio stock in the first quarter, while ACG Wealth, Fieldpoint Private Securities, and Gladstone Institutional Advisory all grew their stakes during the first quarter.
Nio stock forecast
NIO stock gained an additional 0.9% on Monday to close at $21.30. Though we noted the reduced volatility going into earnings on Monday, the chart remains biased toward the upside. The 9-day moving average crossed above the 21-day average back on July 21, and the Moving Average Convergence Divergence (MACD) indicator effected a bullish crossover on August 11.
Nio shares are also just above the ascending supportive trend line at $19.65. This should backstop NIO stock from any major sell-off since the bottom trend line has held in place since May 25. Nio faced resistance between $21 and $22 during the prior week, but positive earnings could send the stock up to resistance at $24, where Nio experienced a range high in mid-June.
NIO daily stock chart
- Nio is estimated to report second-quarter earnings on Thursday, August 18.
- Li Auto reported a wider than expected net loss on Friday.
- Wall Street expects GAAP EPS of $-0.20 on $1.43 billion in sales.
UPDATE: Nio has shed 3% to trade down to $20.66 in the first half hour of trading on Tuesday. The Nasdaq is off 0.7% at the same time as the market enters a risk-off mode after poor US housing data emerged that sent traders selling risk and buying more hardy Dow stocks. The Dow index is up 0.2% at the start of Tuesday. Competitors Li Auto (LI) and Xpeng (XPEV) are down 4.8% and 4.5%, respectively. The Chinese EV sector is also selling off due to poor economic data out of that country. The Chinese government agreed to insure some real estate debt directly in a move seen as necessary to thwart a much larger collapse in that industry. More than 6,700 call contracts for the $21 strike price expiring this Friday have traded on Tuesday with the last price at $0.43.
Chinese EV superstar Nio (NIO) is expected to release second-quarter earnings (the quarter ending in June) sometime this week. Most estimates are for Thursday, August 18, but the release could come at any time.
Also read: Tesla Stock Deep Dive: Price target at $400 on China headwinds, margin compression, lower deliveries
Wall Street expects a GAAP loss of $-0.20 per share on revenue of $1.43 billion. This is the accepted conversion rate from -1.15 and 9.6 billion Chinese yuan, according to data from Refinitiv.
Nio earnings preview
Nio missed forecasts from analysts in the first quarter but only narrowly. For Q2, Wall Street is expecting an extremely low 10% gain in sales YoY, which should be easy to beat. There are worries over the extent to which covid-related shutdowns affected output at the Chinese EV automaker, which is why the consensus estimate is so low. Of the four analyst revisions to Q2 EPS, three were downward in nature. Nio posted $1.48 billion in sales during the first quarter, so the current forecast calls for a decline of $50 million.
For the full year, analyst consensus has EPS of -4.06 on 60.66 billion yuan, and their average price target is $36.31, well above Nio's current stock price of $21.30.
Nio delivered 10,052 vehicles in July, which was a 22% decline MoM from its June number. The decline was a result of supply chain mishaps involving the production of the ET7 and EC6 models. Management said they were well on their way to fixing the supply chain issues involving suppliers during the third quarter.
If there are any worries about Nio's upcoming earnings it has to do with Li Auto (LI). The competitor and EV manufacturer released earnings on Friday that missed earnings expectations. Despite delivering more than 28,600 vehicles in the quarter, management guided Q3 deliveries to between 27,000 and 29,000 deliveries. This means the 63% YoY global gain in EV adoption during the first half of the year, which was duly experienced by LI, is expected to fall flat in the second half.
Most of the alterations in price targets took place back in June, and news has been fairly quiet with Nio over the summer. HSBC raised its price target from $26 to $28. Mizuho lowered it from $55 to $48. Citi lowered its price target from $87 to $41.10, and Morgan Stanley lowered its target from $34 to $31. All four analyst teams have "buy" or "outperform" ratings on Nio stock.
Nio has been a popular stock among US hedge funds this year and last. Mutual Advisors sold 17% of its stake in Nio stock in the first quarter, while ACG Wealth, Fieldpoint Private Securities, and Gladstone Institutional Advisory all grew their stakes during the first quarter.
Nio stock forecast
NIO stock gained an additional 0.9% on Monday to close at $21.30. Though we noted the reduced volatility going into earnings on Monday, the chart remains biased toward the upside. The 9-day moving average crossed above the 21-day average back on July 21, and the Moving Average Convergence Divergence (MACD) indicator effected a bullish crossover on August 11.
Nio shares are also just above the ascending supportive trend line at $19.65. This should backstop NIO stock from any major sell-off since the bottom trend line has held in place since May 25. Nio faced resistance between $21 and $22 during the prior week, but positive earnings could send the stock up to resistance at $24, where Nio experienced a range high in mid-June.
NIO daily stock chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.