NIO’s Q1 Might Be a Non-Event, Watch for These Updates

NIO (NYSE:NIO) will likely release its results for this first quarter of 2020 on May 28. The company reported its earnings for the fourth quarter of 2019 on March 18. By then, COVID-19 had impacted the company’s demand and supply chains.

NIO’s Q1 guidance

NIO’s guidance for the first quarter factored in the downturn. The company guided for vehicle deliveries between 3,400 and 3,600. The amount implied a decline of 56%–59% sequentially. Overall, the company delivered 3,838 vehicles during the first quarter.

What to expect in Q1

There isn’t a significant difference between the guidance and the actual deliveries. As a result, the revenue guidance and actual revenues shouldn’t deviate much. NIO expected revenues between 1,209 million renminbi ($173.7 million) and 1,273 million renminbi ($182.9 million) for the quarter. According to the data compiled by Thomson Reuters, analysts expect revenues of 1,669 million renminbi ($234 million). Notably, the company isn’t expected to have a significant surprise as far as the top line is concerned.

Worst of coronavirus is over for NIO

According to CNBC, NIO’s founder and CEO William Li mentioned on April 29 that the worst of the coronavirus impact is over for the company. He said that the coronavirus only had a material impact on the company’s supply chains. As the supply chains normalize, the company doesn’t expect much impact on the rest of the year. Likewise, the company reported a solid April delivery report. The deliveries came in at 3,155 vehicles in April—a growth of 106% month-over-month and 181% YoY.

Investors look forward to May deliveries

Currently, investors have been looking forward to May deliveries. A strong May deliveries report could ease investors’ concerns that April’s solid numbers weren’t just due to the pent-up demand. Also, management’s comments regarding the future outlook for deliveries will be an important update. Investors will look forward to NIO’s guidance for the second quarter and fiscal 2020.

The US Senate passed legislation that could result in the delisting of Chinese companies. As a result, investors might expect management to provide some assurance in this regard. Notably, Alibaba (NYSE:BABA) told investors not to worry about US delisting. To learn more, read Delisting Impact: Alibaba, Baidu, and NIO Investors.

To learn about analysts’ sentiment for NIO stock before its first-quarter earnings, read NIO Stock: Analysts’ Sentiment before Its Q1 Earnings.