Earnings Results: Nio forecast disappoints as Chinese electric-car maker faces supply-chain concerns


Nio Inc. executives suggested Tuesday that growth will be hard to come by in the fourth quarter amid supply-chain issues, and shares slipped in after-hours trading.

Nio NIO, -5.93% executives guided for fourth-quarter vehicle deliveries of 23,500 to 25,500 cars, which suggests roughly flat sales from the record 24,439 the Chinese electric-car company reported Tuesday for the third quarter. Chief Executive William Bin Li referred to “continued supply-chain volatilities” in a statement Tuesday, while guiding for fourth-quarter revenue of $1.45 billion to $1.57 billion, a range wholly lower than the average analyst estimate of $1.69 billion.

Nio has faced production issues that led to a severe downturn in October, when the company delivered fewer than 4,000 vehicles while making changes to manufacturing. In a conference call Tuesday, Bin Li said the supply chain “remains challenging.”

“Our supply-chain team and partners have adopted a series of measures to support the record high quarterly deliveries in the third quarter, and will continue to do so,” he said.

Nio reported a third-quarter loss of $440.6 million, or 28 cents per American depository share, wider than a loss of 15 cents a share a year ago due to a large repurchase of equity from a minority investor. After stripping out that charge as well as stock-based compensation, the loss fell to $88.4 million, or 6 cents per ADS. Revenue rose to $1.53 billion from $692 million a year ago.

Analysts on average expected an adjusted loss of 7 cents a share on sales of $1.44 billion, according to FactSet. Nio stock fell 2.3% in the extended session, which ended as the company’s conference call began.

Nio also disclosed that it has sold slightly more than $1.2 billion worth of stock since launching an at-the-market offering in September. Nio targeted $2 billion for the stock sale when it was announced.

Nio’s U.S.-traded ADSs have declined 16.6% so far this year, as the S&P 500 index SPX, -0.35% has gained 24.7%.

This article was originally published by Marketwatch.com. Read the original article here.

Previous articleJudge denies Apple’s motion to delay App Store changes in Epic antitrust case
Next articleFacebook to remove some sensitive ad targeting options, starting Jan. 19


Please enter your comment!
Please enter your name here