This article first appeared on GuruFocus.
Nio (NYSE:NIO) shares jumped more than 3% in premarket trading after the Chinese EV maker reported third-quarter results that showed a smaller-than-expected loss and stronger deliveries.
The company posted a Q3 loss of RMB1.14 per share, narrower than analyst forecasts of RMB1.59, while revenue reached RMB21.79 billion, slightly below consensus.
Deliveries rose to 87,071 vehicles, up about 41% year on year and 21% from the prior quarter, reflecting solid demand for Nio’s model lineup.
Vehicle sales climbed to RMB19.20 billion, a 15% year-on-year increase, and vehicle margin improved to 14.7% from 13.1 a year earlier.
Nio forecast fourth-quarter revenue of RMB32.76 billion to RMB34.00 billion, under the street view, and projected deliveries of 120,000 to 125,000 units, up roughly 65% to 72% year on year.
Management said product competitiveness and brand momentum drove the quarterly strength, but warned that macro and supply factors could affect near-term results.
Analysts will reassess forecasts this week.