NIO Q1 Loss Wider Than Expected, Vehicle Margin Declines
NIO Inc. NIO incurred a loss per American Depositary Share (ADS) of 42 cents in the first quarter of 2023, wider than the Zacks Consensus Estimate of a loss of 22 cents. The reported loss is also wider than the year-ago loss of 18 cents due to lower vehicle margins and higher operating expenses, despite improved deliveries.
This China-based electric vehicle (EV) maker posted revenues of $1,554.6 million, lagging the Zacks Consensus estimate of $1,692 million but rising 7.7% year over year on the back of robust deliveries.
NIO Inc. Price, Consensus and EPS Surprise
NIO Inc. price-consensus-eps-surprise-chart | NIO Inc. Quote
Key Details
NIO delivered 31,041 vehicles in the first quarter, up 20.5% year over year, including 10,430 SUVs and 20,611 sedans.
The revenues generated from vehicle sales amounted to $1,343.2 million, declining 0.2% year over year. The decrease in vehicle sales was mainly led by a lower average selling price. Other sales amounted to $211.4 million, up 117.8%. Strong sales of accessories, provision of repair & maintenance services, provision of auto financing services, sales of used cars and provision of power solutions contributed to the increase.
Gross profit came in at $23.6 million, decreasing 88.8% year over year. The vehicle margin in the reported quarter declined to 5.1% from 18.1% in the first quarter of 2022. The gross margin was 1.5%, down from 14.6% in first-quarter 2022.
Research & development and selling, general & administrative costs were $447.8 million and $356.2 million, respectively, reflecting a year-over-year surge of 74.6% and 21.4%, respectively.
Cash and cash equivalents totaled $2,149.7 million as of Mar 31, 2023 and long-term debt was $1,224.9 million as of the same date.
For the second quarter of 2023, NIO expects deliveries in the range of 23,000-25,000 vehicles, signaling a year-over-year decline of 8.2-0.2%. Revenues are envisioned between $1,273 million and $1,364 million, indicating a year-over-year decrease of 15.1-9%.
Zacks Rank & Key Picks
NIO currently carries a Zacks Rank #3 (Hold).
Some top-ranked players in the auto space are General Motors GM, Stellantis N.V. STLA and Wabash National WNC, all of which sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
General Motors is one of the world’s largest automakers. The Zacks Consensus Estimate for GM’s 2023 sales indicates year-over-year growth of 4.5%.
Stellantis, an Italian-American automaker, is one of the noted names in the auto space. The Zacks Consensus Estimate for STLA’s 2023 sales indicates year-over-year growth of 13.4%.
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings indicates year-over-year growth of 12% and 90.7%, respectively.
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