Nio Inc (NIO)

[DiscoverGold]

Earnings Preview: Nio Inc. (NYSE: NIO)
By: 24/7 Wall St. | September 2, 2022

• Here are previews of two companies set to report results first thing Wednesday morning.

Nio

China-based EV maker Nio Inc. (NYSE: NIO) has dropped about 52% from its share price over the past 12 months. Since dipping to a 52-week low in mid-May, the stock has added 43.4%.

Nio delivered a total of 10,677 vehicles in August and has delivered 71,556 for the first eight months of 2022, representing a year-over-year increase of 28.3%. Continued lockdowns in some of China’s largest cities have hammered car sales. The only reason sales are better this year is that last year was truly awful. Things could get worse as the yuan weakens against the dollar.

There are 26 analyst ratings on Nio’s stock, and 24 are Buy or Strong Buy ratings. At a share price of around $18.80, the upside potential based on a median price target of $29.48 is about 56.8%. At the high target of $64.92, the upside potential is 245%.

For the first quarter of fiscal 2022, the consensus estimates call for revenue of $1.42 billion, down 9.4% sequentially and up 8.4% year over year. Nio is expected to post an adjusted loss per share of $0.18, worse than the $0.12 per-share loss in the prior quarter and much 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 $0.54, worse than the $0.30 loss in 2021, on sales of $8.74 billion, up about 53.7%.

Analysts estimate that Nio will trade at a multiple of 76.1 times earnings in 2024. Until then, it is not expected to post a profit. The enterprise value-to-sales multiple is expected to be 3.1 in 2022 and 1.8 in 2023. The stock’s 52-week range is $11.67 to $44.27. The company does not pay a dividend, and the total shareholder return for the past year is negative 51.9%.

Read Full Story »»»

DiscoverGold