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NIO Stock Falls 5% After Earnings, Analyst Says ‘Prudent’ Guidance a Reflection of Supply Chain Issues

Published 07/09/2022, 11:12 pm
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NIO
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By Senad Karaahmetovic

Shares of Nio (NYSE:NIO) are down over 5.5% in premarket Wednesday after the electric vehicle (EV) maker reported mixed Q2 results and downbeat guidance.

Nio reported a Q2 adjusted loss per American depositary receipts of 1.34 yuan, a wider loss than the projected 1.21 yuan. Revenue came in at 10.29 billion yuan, beating the analyst consensus of 9.72 billion yuan.

In Q2, the company said it delivered 25,059 EV units, which is better than the 23,901 consensus. Overall, the company generated 9.57 billion yuan in vehicle sales, again better than the consensus of 9.14 billion yuan.

For this quarter, Nio expects to deliver between 31,000 and 33,000 vehicles and generate revenue between 12.85 billion yuan and 13.6 billion yuan. Analysts were looking for the Q3 delivery estimate of 37,661 EV units and revenue of 16.23 billion yuan.

A Morgan Stanley analyst noted that “the prudent guidance implies lingering supply crunch of die-casting parts and likely others.”

“3Q guidance may keep investors wary of 4Q volume outlook amid recent Covid outbreaks,” he added in a note.

The analyst sees the orders and ramp-up pace of ET5 as the next catalyst that could send NIO shares higher.

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