Home / Money / NIO Q1 2021 Earnings Report Wrap-up

NIO Q1 2021 Earnings Report Wrap-up

Source: Forecasts based on experts’ agreement from Noticeable Alpha

Key Takeaways NIO provided a record 20,060 automobiles in the very first quarter, just narrowly missing expert estimates.

Vehicle deliveries offer an indication of need for NIO’s main source of income along with the company’s efficient capacity.

The worldwide semiconductor scarcity poses significant difficulties to NIO’s supply chain.

NIO Financial Outcomes: Analysis

NIO Inc. (NIO) reported blended results in its Q1 FY 2021 incomes report. The business published a loss per American depositary share (ADS) that was more than 4 times bigger than experts estimated. Earnings, nevertheless, rose 481.8% compared to the year-ago quarter, beating analysts’ expectations. NIO’s automobile deliveries, which were reported previously this month, came in at 20,060 for the quarter, directly missing what experts had actually anticipated. The business’s shares were down almost 0.5% in after-hours trading soon after NIO posted the profits release. Over the past year, NIO’s shares have provided an overall return of 980.1%, well above the S&P 500’s total return of 43.3%.

NIO Car Deliveries

Most of NIO’s revenue is produced through the sale of cars. The business currently provides 3 kinds of designs: the ES8, the company’s 6-seater and 7-seater flagship premium clever electric SUV; the ES6, the business’s 5-seater high-performance premium wise electrical SUV; and the EC6, the company’s 5-seater premium electrical coupe SUV. The number of lorry deliveries supplies a sign of the demand for NIO’s lorries along with the business’s ability to scale production.

NIO’s automobile shipments increased 422.7% compared to the year-ago quarter, marking the fastest rate of development because Q2 FY 2019. Vehicle sales for the quarter were 7.4 billion yuan ($ 1.1 billion), up 489.8% from the same three-month duration a year back. The company associated the higher vehicle sales to higher deliveries and greater typical market price. These aspects, along with lower material costs, helped push NIO’s lorry margin to 21.2% compared to -7.4% in the year-ago quarter.

NIO said that need for its products stays strong, however its supply chain faces significant difficulties as a result of the worldwide semiconductor lack. The company stopped production for five days at one of its plants in Hefei province beginning in late March due to the chip lack. NIO also noted that it started the preparation and building of a new plant in Xinqiao Industrial Park in Hefei, which will help it to protect adequate production capability.

NIO Outlook

NIO anticipates to deliver in between 21,000 and 22,000 automobiles in Q2 FY 2021. It also anticipates total incomes for the 2nd quarter to be between 8.1 billion yuan ($1.2 billion) and 8.5 billion yuan ($1.3 billion), representing a year-over-year (YOY) boost of between 119.0% and 128.7%.

Examine back later for protection of the bottom lines of NIO’s earnings call.

About Jamie Singh

Check Also

J.P. Morgan: 3 Stocks That Could Climb up Over 60%

We’re well into profits season, and the aggregate business incomes are beating expectations once again. …