Categories Industrials

Nio likely to report weak Q2 earnings on Sept 24

China-based electric carmaker Nio Inc. (NYSE: NIO) is set to report its second-quarter earnings results on Tuesday, September 24, before the market opens. The bottom line will be hurt by higher costs and expenses while the top line could be benefited by higher deliveries.

The results were hurt by challenging sales environment and slow macro-economic conditions in China that was caused by the trade war with the US. The company has been facing hurdle with regard to manufacturing its vehicles in higher volumes than its present capabilities. Also, Nio is struggling to secure additional funding for increasing volume and satisfying the customers need.

Nio is expected to invest continuously in research and development as well as sales and marketing as new vehicle models and enhanced versions of existing vehicle models are likely to be introduced in the future. The investments are anticipated to not result in an increase in revenue or positive cash flow in the near future.

Nio likely to report weak Q2 earnings on Sept 24
Courtesy: Nio

Investors expect the company to elaborate more on the activation of full features of NIO Pilot advanced driving assistant system (ADAS) system during the second quarter call. During June, Nio added seven features in an update to NIO Pilot that included Highway Pilot, Traffic Jam Pilot, Auto Lane Changing and more.

For the second quarter, the company expects the sales environment to be more challenging with an overall sequential decline in demand and deliveries, as competition accelerates and the general automobile market in China remained muted.

Read: 7 headwinds that could hamper Nio growth

Analysts expect the company to report a loss of $0.18 per share on revenue of $185 million for the second quarter. In the first quarter, Nio posted an adjusted loss of $0.36 per American Depository Share (ADS) on revenue of $243.1 million. Majority of the analysts recommended a “hold” rating with a price target of $5.19 per share.

For the second quarter, deliveries totaled 3,553 units, exceeding the midpoint of the company’s previous guidance range of 2,800 to 3,200 units by 18.4%. Nio expects second-quarter total revenue in the range of RMB1,134 million to RMB1,294 million ($169 million to $193 million), down about 20.7% to 30.5% from last quarter.

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

2 thoughts on “Nio likely to report weak Q2 earnings on Sept 24

Comments are closed.

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top