Nio Inc (NIO)

[DiscoverGold]

Earnings Preview: Nio Inc. (NYSE: NIO)
By: 24/7 Wall St. | June 7, 2022

• Here is a look at four companies scheduled to release quarterly results late Wednesday or early Thursday.

Nio

China-based electric vehicle maker (EV) Nio Inc. (NYSE: NIO) has dropped about 54% from its share price over the past 12 months. Since dipping to a 52-week low in mid-May, the stock has added 46%. Nio is expected to report results before markets open on Thursday.

Barron’s reported three reasons for the recent share price increase: first, the company is reportedly looking to hire U.S. talent and that could lead to sales and perhaps production in this country. Second, China’s government has instituted a tax break for people who buy new cars by the end of the year. Third, Shanghai will subsidize EV purchases to the tune of $1,500 until the end of the year.

There are 26 analyst ratings on Nio’s stock, and all but two are Buy or Strong Buy ratings. At a share price of around $19.20, the upside potential based on a median price target of $32.53 is about 69%. At the high target of $83.23, the upside potential is 333%.

For the first quarter of fiscal 2022, the consensus estimates call for revenue of $1.48 billion, down 5.1% sequentially but 21.3% higher year over year. Nio is expected to post an adjusted loss per share of $0.16, better than the $0.17 per-share loss in the prior quarter and worse than the year-ago loss of $0.03 per share. For the full year, the company is expected to report a per-share loss of $0.50, worse than the $0.30 loss in 2021, on sales of $9.41 billion, up about 65.5%.

Analysts estimate that Nio will trade at 84.7 times earnings in 2024. Until then, it is not expected to post a profit. The enterprise value-to-sales multiple is expected to be 2.9 in 2022 and 1.7 in 2023. The stock’s 52-week range is $11.67 to $55.13. The company does not pay a dividend, and the total shareholder return for the past year is negative 54.3%.

Read Full Story »»»

DiscoverGold