NIO’s Q2 Loss Narrows, Sales Jump Y/Y, Q3 Outlook Robust

NIO Inc. NIO reported second-quarter 2021 loss per American Depositary Share (ADS) of 7 cents, narrower than the year-ago loss of 16 cents owing to higher revenues. The China-based electric vehicle maker posted revenues of $1,308.4 million, up a whopping 127.2%, year over year. Robust deliveries in second-quarter 2021 led to this outperformance.

NIO delivered 21,896 vehicles in the second quarter of 2021, including 4,433 ES8s, 9,935 ES6s and 7,528 EC6s. Total deliveries skyrocketed 111.9%, year over year.

NIO Inc. Price, Consensus and EPS Surprise

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

Revenues generated from vehicle sales amounted to $1,225.4 million, representing a 127% jump from the corresponding quarter of 2020. The increase in vehicle sales was mainly attributable to higher deliveries achieved from more product mix offered to customers. Other sales amounted to $83.1 million, 130.3% higher than the year-ago period.

Importantly, vehicle margin for the reported quarter was 20.3% compared with the year-ago period’s 9.7%. Higher delivery volumes and higher average selling price as well as lower material cost led to the improvement in vehicle margin. Gross margin was 18.6% compared with the 8.4% seen in second-quarter 2020 on the back of robust sales and increased vehicle margin. R&D and SG&A costs were $136.9 million and $232 million, reflecting a year-over-year surge of 62.1% and 59.9%, respectively.

Cash and cash equivalents totaled $2,694 million as of Jun 30, 2021. Long-term debt was $1,516.5 million.

NIO — dubbed as the Tesla TSLA of China — expects third-quarter 2021 deliveries in the band of 23,000-25,000 vehicles, signaling an uptick in the range of 88.4% to 104.8%. Revenues are envisioned between $1,380.4 million and $1,491.7 million, indicating a year-over-year jump of 96.9-112.8%.

NIO, peers of which include XPeng Inc. XPEV and Li Auto LI, currently carries a Zacks Rank of 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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