Nio Posts Excellent Q3 Results, Offers Q4 Guidance


China-based EV maker Nio (NIO) reported excellent financial results for the third quarter of 2021 after the market closed on Tuesday.

Based out of Shanghai, Nio designs, manufactures and sells smart and connected EVs in China, Hong Kong, the U.S., the U.K., and Germany. (See Insiders’ Hot Stocks on TipRanks)

Earnings and Revenues

The company recorded a loss of $0.06 per share, narrower than the Street’s estimate of $0.09 per share and the year-ago loss of $0.82 per share.

Total revenues increased 116.6% year-over-year to $1.52 billion, surpassing analysts’ expectations of $1.46 billion.

Sales and Deliveries

Vehicle sales jumped 102.4% year-over-year to $1.34 billion, and other sales surged 350.8% to $181.4 million as a result of sales of automotive regulatory credits and battery upgrade service.

Vehicle deliveries more than doubled to 24,439. The figure includes 5,418 ES8s, 11,271 ES6s and 7,750 EC6s.

Margins

Vehicle margin rose to 18% during the quarter from 14.5% in the third quarter of last year, primarily due to higher average selling price and lower material cost.

Furthermore, gross margin stood at 20.3%, significantly higher than 12.9% in the previous year. The rise was driven by increased vehicle margin and sales of automotive regulatory credits.

The company ended the third quarter of 2021 with cash and cash equivalents, restricted cash, and short-term investments of $7.3 billion.

Management Comments

Chairman and CEO of Nio, William Bin Li, said, “Our demand continues to be strong and our new orders reached a new record high in October. Despite the continued supply chain volatilities, our teams and partners are working closely together to secure the supply and production for the fourth quarter of 2021.

“Meanwhile, we are fully dedicated to accelerating our products and technologies development and bringing the three new products based on NIO Technology Platform 2.0 to users in 2022 to lead the smart EV transformation and adoption.”

Outlook

For the fourth quarter, the EV maker anticipates total revenues to range from $1.46 billion to $1.57 billion, while the Street’s estimate stands at $1.74 billion.

Additionally, it expects to deliver between 23,500 and 25,500 vehicles during the fourth quarter of 2021.

Wall Street’s Take

After Nio announced its third-quarter results, Mizuho Securities analyst Vijay Rakesh maintained a Buy rating on the stock with a price target of $67 (61.2% upside potential).

The analyst expects the company to post a loss of $0.42 per share in the fourth quarter.

Overall, the stock has a Strong Buy consensus rating based on nine Buys and one Hold. The average Nio price target of $59.91 implies 44.1% upside potential.

Website Traffic

TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Nio’s performance.

According to the tool, the company’s website traffic registered a 21.8% increase in global visits in October. Moreover, website traffic has risen 170% year-to-date.

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