NIO Surpasses Q4 Earnings Expectations, Eyes Growth With New Electric Flagship Launch
Portfolio Pulse from Anusuya Lahiri
NIO, Inc. reported Q4 revenue of $2.41 billion, surpassing analysts' expectations of $2.29 billion. The company saw a 6.5% Y/Y revenue increase but a 10.3% decrease from the previous quarter. Adjusted losses were better than expected at $0.39 per share against an anticipated $0.51. Vehicle deliveries rose 25% Y/Y to 50,045 units. Gross margin improved to 7.5% from last year's 3.9%. NIO unveiled its new electric flagship, ET9, and expects Q1 deliveries between 31,000 to 33,000 units with revenue projections of $1.48 billion to $1.56 billion, below the consensus of $2.28 billion. NIO shares dropped 0.94% in premarket trading.
March 05, 2024 | 11:33 am
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NEGATIVE IMPACT
NIO surpassed Q4 earnings expectations with higher revenue and lower losses than anticipated, unveiled new flagship ET9, but projected Q1 revenues below consensus.
Despite surpassing Q4 expectations, NIO's lower than expected Q1 revenue forecast and premarket share price drop indicate potential short-term negative impact on stock price.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100
NEUTRAL IMPACT
Investors can gain exposure to NIO through KraneShares MSCI China Clean Technology Index ETF (KGRN), which may be impacted by NIO's performance.
As KGRN provides exposure to NIO, its performance is indirectly affected by NIO's financial results and outlook, though the diversified nature of ETFs may mitigate direct impact.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Invesco Golden Dragon China ETF (PGJ) offers exposure to NIO, potentially impacting its performance based on NIO's earnings and outlook.
PGJ's performance may be influenced by NIO's earnings and future expectations due to its exposure to NIO, though the impact is likely moderated by the ETF's diversified portfolio.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50