NIO Inc. (NIO) Tops Q3 EPS by 1c, Offers Q4 Guidance

(Updated - December 30, 2019 6:41 AM EST)

NIO Inc. (NYSE: NIO) reported Q3 EPS of ($0.33), $0.01 better than the analyst estimate of ($0.34). Revenue for the quarter came in at $257 million versus the consensus estimate of $230 million.

• Deliveries of vehicles were 4,799 in the third quarter of 2019 including 4,196 ES6s and 603 ES8s, compared with 3,553 vehicles delivered in the second quarter of 2019.

CEO and CFO Comments

“NIO delivered a total of 4,799 ES8 and ES6 vehicles in the third quarter of 2019, representing a 35.1% increase from the second quarter. The electric vehicle sector experienced substantial softness in the second half of 2019 after the reduction of EV subsidies in China. Despite the challenges, NIO’s sales improved solidly since September,” said William Bin Li, founder, chairman and chief executive officer of NIO. “Our strong performance was attributable to the competitiveness of our products and services, the recognition and strong support from our user community, and our sales network expansion strategy as we continue to launch more efficient NIO Spaces. We expect over 8,000 vehicles to be delivered in the fourth quarter, a record of quarterly deliveries in our history. With that, the total aggregate deliveries in 2019 are estimated to reach over 20,300.

“On December 28, we hosted our third annual NIO Day, dedicated to and for, our user community. During the event, we unveiled a brand-new model, the EC6, a smart premium electric coupe SUV, showcasing our pursuit of both high performance and stylish design in our products. We also launched the all-new ES8, NIO’s flagship model, being well positioned to become the most competitive electric SUV in the mid to large size segment. Furthermore, we will make available a 100-kWh battery pack, which will significantly increase the NEDC driving range of the new ES8, ES6 and EC6 to 580, 610 and 615 kilometers respectively.

“We had delivered over 30,000 vehicles in 296 cities since June 2018, expanded our product offerings to 3 competitive SUV models, and successfully established the only premium EV brand from China. We are proud of our team for the speedy and solid execution. We will continue to drive forward by improving our products and services, enhancing our sales and service network, as well as building our user community,” concluded Mr. Li.

“Facing a continuous soft auto market, we strongly believe the smart premium EV sector will outperform the industry in its growth rate in the foreseeable future. NIO ranked the highest in new vehicle quality among all brands in JD Power’s 2019 New Energy Vehicle Experience Index Study. Additionally, ES6 achieved No.1 in electric SUV sales and top 10 ranking in mid-size premium SUV sales, including ICE and electric vehicle models, in China in October and November. We are pleased to see the momentum continues,” added Wei Feng, NIO’s chief financial officer. “During the quarter, we also implemented comprehensive cost control measures across the organization to improve operational efficiency. As a result, our third quarter SG&A and R&D expenses decreased by 18.1% and 21.3% respectively, compared with the second quarter, and we expect further efficiency gains in the fourth quarter.”

Business Outlook

For the fourth quarter of 2019, the Company expects:

• Deliveries of vehicles to be over 8,000 units, representing an increase of over 66.7% from the third quarter of 2019.
• Total revenues to be approximately RMB2,810 million (US$393.2 million), representing an increase by approximately 53.0% from the third quarter of 2019.

(Consensus is for Q4 revenue of $289.2 million)

For earnings history and earnings-related data on NIO Inc. (NIO) click here.

You May Also Be Interested In

• Philip Morris (PM) beats Q1 earnings, revenue estimates; issues upbeat guidance
• NVR, Inc. (NVR) Tops Q1 EPS by 1244c
• JetBlue Airways (JBLU) stock dips as revenue declines