NIO Q4 Loss Widens Y/Y, Sales Up, Vehicle Margins Plummet

NIO Inc. NIO incurred a loss per American Depositary Share (ADS) of 51 cents in the fourth quarter of 2022, wider than the year-ago loss of 21 cents amid lower vehicle margins and higher operating expenses, despite improved deliveries. This China-based electric vehicle (EV) maker posted revenues of $2,329 million, up 62.2% year over year on the back of robust deliveries.

NIO Inc. Price, Consensus and EPS Surprise

NIO Inc. Price, Consensus and EPS Surprise

NIO Inc. Price, Consensus and EPS Surprise

NIO Inc. price-consensus-eps-surprise-chart | NIO Inc. Quote

Key Details

NIO delivered 40,052 vehicles in the fourth quarter, up 60% year over year, including 20,824 SUVs and 19,228 sedans.

The revenues generated from vehicle sales amounted to $2,139.9 million, rising 60.2% year over year. The increase in vehicle sales was mainly led by higher deliveries. Other sales amounted to $189.1 million, up 90.3%. The increase was due to an increase in revenues from the rendering of research and development services.

Gross profit came at $90.1 million, decreasing 63.4% year over year. The vehicle margin in the reported quarter declined to 6.8% from 20.9%. Increased battery cost per unit and higher inventory provisions affected vehicle margins. The gross margin was 3.9%, down from 17.2% in fourth-quarter 2021.

Research & development and selling, general & administrative costs were $577.1 million and $511.4 million, respectively, reflecting a year-over-year surge of 117.7% and 49.6%.

Cash and cash equivalents totaled $2,883.4 million as of Dec 31, 2022. The long-term debt was $1,578.3 million as of the same date.

For the first quarter of 2023, NIO expects deliveries in the band of 31,000-33,000 vehicles, signaling a year-over-year uptick of 20.3-28.1%. Revenues are envisioned between $1,584 million and $1,674 million, indicating a year-over-year increase of 10.2-16.5%.

Zacks Rank & Key Picks

NIO currently carries a Zacks Rank #4 (Sell).

A few better-ranked players in the auto space include BMW AG BAMXF, Wabash National WNC and Modine Manufacturing MOD, all sporting a Zacks Rank #1 (Strong Buy).

BMW AG is a multi-brand automobile manufacturer that focuses on the premium segments of the worldwide automobile and motorcycle markets and has three brands: BMW, MINI and Rolls-Royce. The Zacks Consensus Estimate for BAMXF’s 2023 sales implies year-over-year growth of 1.88%.

Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings implies year-over-year growth of 13.06% and 24%, respectively.

Modine operates primarily in a single industry consisting of the manufacture and sale of heat transfer equipment. The Zacks Consensus Estimate for MOD’s 2023 sales and earnings implies year-over-year growth of 11.43% and 43.09%, respectively.

You can see the complete list of today’s Zacks #1 Rank stocks here.

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