NIO's Q3 Loss Widens Y/Y, Revenues Witness Massive Surge
NIO Inc. NIO reported third-quarter 2021 loss per American Depositary Share (ADS) of 28 cents, wider than the year-ago loss of 14 cents amid higher operating expenses. The China-based electric vehicle (EV) maker posted revenues of $1,521.8 million, up a whopping 116.6% year over year on the back of robust deliveries.
NIO delivered 24,439 vehicles in the third quarter of 2021, including 5,418 ES8s, 11,271 ES6s and 7,750 EC6s. Total deliveries rocketed 100.2% year over year.
NIO Inc. Price, Consensus and EPS Surprise
NIO Inc. price-consensus-eps-surprise-chart | NIO Inc. Quote
Key Tidbits
Revenues generated from vehicle sales amounted to $1,340.4 million, representing a 102.4% jump from the corresponding quarter of 2020. The increase in vehicle sales was mainly attributable to higher deliveries achieved from a greater product mix offered to customers. Other sales amounted to $181.4 million, up a whopping 350.8% from the year-ago period.
Vehicle margin for the reported quarter was 18% compared with the year-ago period’s 14.5%. Higher delivery volumes and average selling price as well as lower material cost led to the improvement in vehicle margin. Gross margin was 20.3% compared with 12.9% in third-quarter 2020 on the back of robust sales and increased vehicle margin. Research & development and selling, general & administrative costs were $185.2 million and $283.2 million, reflecting a year-over-year surge of 101.9% and 94.1%, respectively.
Cash and cash equivalents totaled $3,351 million as of Sep 30, 2021. Long-term debt was $1,525.1 million. NIO — which currently carries a Zacks Rank #4 (Sell) — expects fourth-quarter 2021 deliveries in the band of 23,500-25,000 vehicles, signaling an uptick in the range of 35.4-46.9%. Revenues are envisioned between $1,455.1 million and $1,568.4 million, indicating a year-over-year jump of 41.2-52.2%.
Other EV Firms Recording Stellar Deliveries
The increasing adoption of green vehicles is driving sales of EV pure players. While most of the legacy auto players witnessed a year-over-year decline in vehicle sales, EV bellwether Tesla TSLA remained a striking outlier.
The Zacks Rank #1 (Strong Buy) company delivered 241,391 vehicles in third-quarter 2021, up 73% year over year. Deliveries comprised 232,102 and 9,289 Model 3/Y and Model S/X units, respectively. While Tesla has not provided any clear delivery target for 2021, it reiterated its goal of achieving 50% average annual growth in vehicle deliveries over a multi-year horizon.
Tesla surpassed the Zacks Consensus Estimate for earnings thrice in the last four quarters and missed once, with an average surprise of 25.4%. The consensus mark of 2021 earnings and sales implies an uptick of 166.5% and 62.9%, respectively, on a year-over-year basis. Shares of TSLA have rallied 50.7% year to date.
Li Auto LI and XPeng XPEV — the rising EV stars of China — also noted robust third-quarter deliveries.
Li Auto sold 25,116 Li ONEs during the quarter under discussion, up 190.0% year over year. For the first nine months of 2021, deliveries of Li ONEs totaled 55,270 units. Cumulative deliveries as of Sep 30, 2021 reached 88,867 units.
The consensus mark for Li Auto’s 2021 earnings and sales implies an uptick of 10% and 102.7%, respectively, on a year-over-year basis. Shares of LI have moved up 6.3% year to date. The firm carries a Zacks Rank #3 (Hold).
XPeng delivered 25,666 vehicles in the third quarter of 2021, skyrocketing 199% year over year. As of Sep 30, 2021, year-to-date deliveries reached 56,404 units, representing a year-over-year surge of 301%. XPeng is slated to report third-quarter results on Nov 23.
The consensus mark for the firm’s 2021 earnings and sales implies an uptick of 109.7% and 223.5%, respectively, on a year-over-year basis. Shares of XPeng have risen 11.1% year to date. XPEV currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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