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Things Investors Should Note Ahead Of NIO's Q4 Earnings

By Zacks Investment ResearchStock MarketsMar 15, 2020 11:46PM ET
www.investing.com/analysis/things-investors-should-note-ahead-of-nios-q4-earnings-200516418
Things Investors Should Note Ahead Of NIO's Q4 Earnings
By Zacks Investment Research   |  Mar 15, 2020 11:46PM ET
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NIO Inc. (NYSE:NIO) is set to release fourth-quarter 2019 results on Mar 18, before the opening bell. The Zacks Consensus Estimate for fiscal fourth-quarter loss per ADS of 36 cents has remained stable for the past 60 days. The year-ago loss was 49 cents per ADS. The Zacks Consensus Estimate for revenues is pegged at $412 million, suggesting a decline from $500 million reported in the prior-year quarter.

Factors at Play

Increasing demand for NIO’s ES6 model is likely to be reflected in the firm’sfourth-quarter 2019 results. The ES6 model, NIO’s 5-seater premium electric SUV, accounted for bulk of deliveries. Despite a slowdown in global auto sales — especially in the electric vehicle market — in second-half 2019 amid subsidy cuts, NIO managed to record the fifth straight month of delivery gain in December 2019.

During the October to December quarter, NIO delivered 8,244 vehicles, marking a 3% year-over-year increase. Notably, fourth-quarter 2019 deliveries comprised 6,824 and 1,400 units of ES6s and ES8s, respectively.

However, the company has been bearing the brunt of operational inefficiency over the last several quarters. While rising deliveries are expected to have positively impacted NIO’s revenues, escalating R&D and SG&A costs are likely to have dented operating margins.

What the Zacks Model Says

Our proven model does not conclusively predict an earnings beat for NIO. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The company has an Earnings ESP of 0.00%.

Zacks Rank: NIO currently has a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

While our model does not indicate an earnings beat for the electric vehicle startup NIO, some of the auto biggies that delivered better-than expected results in fourth-quarter 2019 include Tesla (NASDAQ:TSLA) , Fiat Chrysler (NYSE:FCAU) and General Motors (NYSE:GM) .

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General Motors Company (GM): Free Stock Analysis Report

Tesla, Inc. (TSLA): Free Stock Analysis Report

Fiat Chrysler Automobiles N.V. (FCAU): Free Stock Analysis Report

NIO Inc. (NIO): Free Stock Analysis Report

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Zacks Investment Research

Things Investors Should Note Ahead Of NIO's Q4 Earnings
 

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Things Investors Should Note Ahead Of NIO's Q4 Earnings

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