Nio Inc (NIO)

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Earnings Preview: Nio Inc. (NYSE: NIO)
By: 24/7 Wall St. | February 27, 2023

• Here is a look at what to expect when the following three companies report results before Wednesday’s opening bell.

Nio

Shares of China-based electric vehicle (EV) maker Nio Inc. (NYSE: NIO) have lost about 55% from their price over the past 12 months. Worse, perhaps, is a dip of about 3.7% since the beginning of the year. The company is reportedly building a battery plant that is said to be large enough to supply enough long-range batteries to supply 400,000 vehicles annually. Nio delivered almost 123,000 vehicles last year, an increase of more than a third year over year. That is why the company’s guidance will be so important: When will it build enough cars to soak up its capacity to build all those batteries?

There are 29 analyst ratings on Nio’s stock, and 24 are Buy or Strong Buy. At a price of around $9.40 a share, the upside potential based on a median price target of $16.48 is around 75.3%. At the high target of $28.09 the upside potential is nearly 200%.

For the fourth quarter of fiscal 2022, the consensus estimates call for revenue of $2.56 billion, up nearly 40% sequentially and by 64.1% year over year. Nio is expected to post an adjusted loss per share of $0.23, worse than the $0.19 loss in the prior quarter, and worse than the year-ago loss of $0.17 per share. For the full year, the forecast calls for a per-share loss of $0.94, worse than the $0.30 loss in 2021, on sales of $7.31 billion, up about 28.5%.

Analysts estimate that Nio will not produce a profit in 2022, 2023 or 2004. The enterprise value to sales multiple is expected to be 1.8 in 2022. Based on average estimated sales of $13.73 billion and $18.51 billion for 2023 and 2024, respectively, the multiple is 1.0 for 2023 and 0.7 for 2024. The stock’s 52-week range is $8.38 to $24.23. The company does not pay a dividend and the total shareholder return for the past year is negative 55.35%.

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