Niu Technologies Faces Challenging Quarter With E-Scooter Sales & Revenue Dip, Looks To New Kick-Scooter For Global Market Growth
Portfolio Pulse from Anusuya Lahiri
Niu Technologies (NASDAQ:NIU) reported a significant decline in Q3 FY23 with revenues down 19.6% to $127.06 million and a shift from adjusted net income to a net loss. E-scooter sales dropped by 17.1% Y/Y, with a notable decrease in both China and international markets. The company is facing a challenging quarter with a lower gross margin and an increased operating loss. Despite the downturn, Niu is focusing on the mass-premium market and expects Q4 revenues to potentially decrease by up to 20% Y/Y. NIU shares fell by 4.66% in premarket trading.
November 20, 2023 | 12:50 pm
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Niu Technologies reported a decline in Q3 FY23 revenue and e-scooter sales, with a shift to a net loss and a decrease in gross margin. Shares dropped 4.66% in premarket trading.
The reported decline in revenue and sales, along with the shift to a net loss, is a negative indicator for the company's financial health in the short term. The premarket share price reaction suggests that the market is responding negatively to the news, which is likely to influence the stock price negatively in the short term.
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