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China’s NIO to Report Its Q4 Earnings after the Market Closes

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Mar. 5 2019, Published 1:51 p.m. ET

NIO’s fourth-quarter earnings

NIO (NIO) is scheduled to release its fourth-quarter earnings report after the US market closes on March 5. NIO stock has been trading on a strong bullish note for the last few months. The stock rose 23.7% in January. NIO stock extended the gains and rose 21.4% in February. At 7:26 AM EST on March 5, NIO stock was trading on a positive note with 1.3% gains in the pre-market session. Let’s take a quick look at the recent trend in the company’s financials before its fourth-quarter earnings report.

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Recent trend in NIO’s financials

NIO reported an adjusted loss of 10.35 Chinese yuan ($1.51) per share in the third quarter. The third-quarter financials were better than the adjusted loss of 57.82 yuan per share in the second quarter of 2018 and the loss of 58.52 yuan per share in the third quarter of 2017.

The company generated 1,470 million yuan or $214.0 million in revenues in the third quarter, which was much higher than 46 million yuan in the second quarter. According to NIO’s fourth-quarter guidance, its revenues could be 2,874.0 million yuan–2,994.3 million yuan, which is equivalent to $418.5 million–$436.0 million.

On the profitability front, NIO reported a gross margin of -7.9% in the third quarter. While the company expects its gross margin to turn positive in the coming quarters, it hasn’t given any specific guidance for its fourth-quarter margins.

Expected updates

In the fourth quarter, NIO reported a 144.2% sequential increase in its ES8 car deliveries, which will likely boost its fourth-quarter earnings results. During NIO’s earnings conference call later on March 5, investors can expect updates related to the company’s 2019 car deliveries, revenue guidance, and the demand for the ES6—its lower-priced SUV.

As of March 4, NIO was trading with 53.5% YTD (year-to-date) gains. During the same period, Tesla (TSLA) has lost 14.3%, while General Motors (GM), Fiat Chrysler (FCAU), Toyota (TM), Honda (HMC), and Ford (F) have risen 17.3%, 0.2%, 2.0%, 4.7%, and 15.2% YTD, respectively.

Chinese companies (MCHI) including Tencent Holdings (TCEHY), Baidu (BIDU), Alibaba (BABA), and JD.com (JD) have risen 11.0%, 1.5%, 36.6%, and 38.0%, respectively, while Uxin (UXIN) has lost 0.6% in 2019.

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