NIO Earnings: What Happened with NIO

Key Takeaways

  • NIO delivered 25,034 vehicles in the fourth quarter, beating analyst estimates.
  • Vehicle deliveries provide an indication of demand for NIO’s main source of revenue as well as the company’s productive capacity.
  • NIO expects to deliver between 25,000 and 26,000 vehicles in Q1 FY 2022.

NIO Earnings Results Metric Beat/Miss/Match Reported Value Analysts’ Prediction Earnings Per Share Miss -1.36 yuan -0.57 yuan Revenue Beat 9.9B yuan 9.7B yuan Vehicle Deliveries (i.e. Automobiles Sold) Beat 25,034 24,930

Source: Predictions based on analysts’ consensus from Visible Alpha

NIO Financial Results: Analysis

NIO Inc. (NIO) reported mixed financial results for Q4 FY 2021. The company posted a loss per share of 1.36 yuan ($0.21), more than twice as large as the loss per share analysts expected. Revenue, however, beat expectations, rising 49.1% year over year (YOY). NIO’s vehicle deliveries, which were reported at the beginning of January, exceeded analysts’ forecasts. Over the past year, NIO’s shares have provided a total return of -40.5%, well below the S&P 500’s total return of 16.2%.

Note that NIO shares referred to throughout this story represent NYSE-listed American depositary shares (ADS) with the ticker NIO.

NIO Vehicle Deliveries

Most of NIO’s revenue is generated through the sale of vehicles. NIO delivered a total of 25,034 vehicles in Q4 FY 2021, up 44.3% from the year-ago quarter. Total vehicle deliveries can be broken down into deliveries of three models:

  • 5,683 ES8s, the company’s 6-seater and 7-seater flagship premium smart electric SUV
  • 12,180 ES6s, the company’s 5-seater high-performance premium smart electric SUV
  • 7,171 EC6s, the company’s 5-seater premium smart electric coupe SUV

The number of vehicle deliveries provides an indication of the demand for NIO’s vehicles as well as the company’s ability to scale production. NIO has faced a number of supply chain issues this year, including challenges related to the global semiconductor shortage. However, China’s shortage of auto semiconductor chips has been easing.

NIO’s total vehicle sales for the quarter rose 49.3% YOY to 9.2 billion yuan. Vehicle sales accounted for about 93% of total revenue for the quarter. The company’s vehicle margin, a measure of gross margin for vehicle sales, was 20.9% compared to 17.2% in the year-ago quarter. When vehicle margin is higher, it means that more vehicle sales are being generated relative to the costs of making those vehicles. NIO said that the increase of vehicle margin over the fourth quarter of 2020 was primarily driven by higher average selling prices.

NIO Vehicle Delivery and Revenue Outlook

NIO expects vehicle deliveries for Q1 FY 2022 to be between 25,000 and 26,000, which would represent a YOY increase of approximately 24.6% to 29.6%. It expects revenue to rise between 20.6% and 25.1% compared to the first quarter of FY 2021.

NIO’s next earnings report (for Q1 FY 2022) is expected to be released on April 27, 2022.

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