Nio stock drops after big revenue miss and warning
By Tomi Kilgore
EV maker's losses widen, but beat expectations, while gross margin contracts
The U.S.-listed shares of Nio Inc. dropped Friday, after the China-based electric vehicle maker reported first-quarter revenue that missed expectations, amid a decrease in average selling prices, and warned of a big miss in the current quarter.
"In the face of the changing market environment, we will observe and analyze the dynamics of the operating environment and competition landscape promptly, and continue to strengthen our competitive advantages in an agile and efficient manner," said Chief Financial Officer Wei Feng.
Nio's stock (NIO) dropped as much as 6.3% right after the results were released, but pared losses to be down 2.4% in the premarket.
Net losses for the quarter to March 31 widened to RMB4.86 billion ($707.6 million), or RMB2.91 per American depositary share, from RMB1.27 billion, or RMB1.12 per ADS, in the same period a year ago.
Excluding nonrecurring items, adjusted per-ADS losses were RMB2.51, compared with the FactSet consensus of RMB2.80.
Total revenue rose 7.7% to RMB10.68 billion ($1.55 billion), well below the FactSet consensus of RMB11.80 billion, with vehicle sales down 0.2% to RMB9.224 billion.
"The decrease in vehicle sales over the first quarter of 2022 was mainly due to lower average selling price as a result of higher proportion of ET5 and 75 kWh standard-range battery pack deliveries, partially offset by an increase in delivery volume," the company said in a statement.
Cost of sales rose much more than revenue, up 24.2%, as gross margin contracted to 1.5% from 14.6%. Deliveries rose 20.5% to 31,041 vehicles.
For the second quarter, Nio said it expects total revenue of between RMB8.74 billion and RMB9.37 billion, below the FactSet consensus of RMB17.98 billion. The company said it expects deliveries of between 23,000 and 25,000 vehicles, down from 25,768 a year ago.
The stock has dropped 11.4% over the past three months through Thursday, while the S&P 500 has gained 9.6%.
-Tomi Kilgore
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06-09-23 0719ET
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