NIO Inc. ($NIO) Earnings (Q2 FY22)

 NIO Inc. ($NIO) Earnings and Opinion:


NIO is a company in the Consumer Cyclical sector and operates in the Auto Manufacturers industry. The company manufactures and sells smart electric vehicles in China. NIO was incorporated in 2014 and is currently headquartered in Shanghai, China. The company made its debut on the stock market in 2018.

NIO Earnings Results (metrics in Yen):

  • Revenues of ¥10.29B beating expectations of ¥9.8B
  • Gross Profit of ¥1.34B beating expectations of ¥1.21B
  • Operating Loss of ¥2.36B beating expectations of ¥2.5B
  • Adjusted EPS of ¥-1.34 missing expectations of ¥-1.21
  • Guidance came in lower than estimates for Q3
Opinion:
NIO is failing to find direction, after reporting earnings before the market opened this morning. The company had some solid earnings for this previous quarter, but the guidance is holding it back a little bit. We already saw deliveries for Li Auto and XPeng give an advance look at what NIO would look like this quarter. The guidance looks pretty brutal with revenues missing by 18.9% and deliveries missing by 15%. With a slowdown like this, it could be apparent of issues with supply chain or other economic challenges lingering. As far as valuation goes, P/S sits at 0.70, which is a good value. Growth is all over the place, but looks to have some upwards growth when the economy cools off. The current ratio is at 2.02, which is a good position. Cash outweighs debt, where cash is $49.41B and debt is $22.09B. In my opinion, I see some upside for sure in NIO. The EV market is starting to become more and more popular as the years pass by. I know in the US, regulations are starting to get passed to faze out gas powered vehicles. I'm not too familiar to what China is going through, but I'm sure the EV market is hot there. I am going to pass on this one until the company reaches profitability and the stock becomes less risky. I like this stock and the future it possesses.

*Information from Yahoo Finance, CMLVIZ, Consensus Gurus

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