Nio Inc (NIO)

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Earnings Previews: Nio (NYSE: NIO)
By: 24/7 Wall St. | November 8, 2021

Nio

China-based EV maker Nio Inc. (NYSE: NIO) has added about 5% to its share price over the past 12 months. At one point in early February, the stock was up 50% but later dropped to 25% below the year-ago share price. It bounced higher in late June and fell again in early October.

Rising competition for EVs, especially recently from Lucid, has cooled enthusiasm for Nio, as did a weak report on October deliveries. What the company has to say about that when it reports earnings Tuesday afternoon could have a big impact on the share price.

There are 22 analyst ratings on Nio’s stock, and 18 of those are Buy or Strong Buy. At a price of around $43.80, the upside potential based on a median price target of $59.38 is about 35.6%. At the high target of $92.01, the upside potential is 110%.

For the third quarter, the consensus estimates call for revenue of $1.47 billion, up 12.4% sequentially and 120% year over year. Nio is expected to post an adjusted loss per share of $0.05, worse than the $0.03 per-share loss in the prior quarter and better than the year-ago loss of $0.12 per share. For the full year, the company is expected to report a per-share loss of $0.42, better than the $0.66 loss last year, on sales of $5.67 billion, up about 128%.

Analysts estimate that Nio will trade at 116.5 times earnings in 2023. Until then, it will not post a profit. The enterprise value-to-sales multiple is expected to be 12.0 in 2021 and 7.2 in 2022. The stock’s 52-week range is $30.71 to $66.99. The company does not pay a dividend.

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