Source: Forecasts based on experts’ consensus from Visible Alpha
Secret Takeaways NIO provided a record 20,060 automobiles in the very first quarter, just narrowly missing expert price quotes.
Lorry deliveries offer an indicator of need for NIO’s primary source of earnings in addition to the business’s productive capability.
The worldwide semiconductor scarcity presents considerable challenges to NIO’s supply chain.
NIO Financial Results: Analysis
NIO Inc. (NIO) reported combined lead to its Q1 FY 2021 incomes report. The company published a loss per American depositary share (ADS) that was more than four times larger than analysts estimated. Profits, however, increased 481.8% compared to the year-ago quarter, beating experts’ expectations. NIO’s car shipments, which were reported earlier this month, can be found in at 20,060 for the quarter, directly missing what analysts had expected. The business’s shares were down almost 0.5% in after-hours trading shortly after NIO posted the profits release. Over the previous year, NIO’s shares have offered a total return of 980.1%, well above the S&P 500’s overall return of 43.3%.
NIO Automobile Deliveries
Most of NIO’s earnings is produced through the sale of lorries. The business currently provides three types of models: the ES8, the business’s 6-seater and 7-seater flagship premium smart electric SUV; the ES6, the business’s 5-seater high-performance premium smart electric SUV; and the EC6, the business’s 5-seater premium electrical coupe SUV. The variety of car shipments provides an indication of the demand for NIO’s cars in addition to the business’s capability to scale production.
NIO’s lorry deliveries rose 422.7% compared to the year-ago quarter, marking the fastest rate of development given that Q2 FY 2019. Lorry sales for the quarter were 7.4 billion yuan ($ 1.1 billion), up 489.8% from the very same three-month period a year earlier. The business associated the greater automobile sales to greater deliveries and higher average asking price. These elements, as well as lower material costs, helped press NIO’s lorry margin to 21.2% compared to -7.4% in the year-ago quarter.
NIO stated that need for its products remains strong, however its supply chain faces substantial challenges as a result of the global semiconductor lack. The company stopped production for five days at one of its plants in Hefei province start in late March due to the chip lack. NIO likewise noted that it began the preparation and structure of a new plant in Xinqiao Industrial Park in Hefei, which will assist it to secure adequate production capability.
NIO expects to deliver between 21,000 and 22,000 automobiles in Q2 FY 2021. It also anticipates total earnings for the second quarter to be in between 8.1 billion yuan ($1.2 billion) and 8.5 billion yuan ($1.3 billion), representing a year-over-year (YOY) boost of between 119.0% and 128.7%.
Inspect back later on for coverage of the bottom lines of NIO’s earnings call.