Back to top

Image: Bigstock

NIO Q4 Loss In Line With Estimates, Sales Top, Q1 View Solid

Read MoreHide Full Article

NIO Inc. (NIO - Free Report) reported fourth-quarter loss per American Depositary Share (ADS) of 14 cents, in line with the Zacks Consensus Estimate. However, the reported figure narrowed from the year-ago loss of 39 cents per ADS. The China-based EV maker posted revenues of $1,017.8 million, up 148.9% year over year. The top line also surpassed the consensus mark of $742 million. Robust deliveries in fourth-quarter 2020 led to higher-than-expected revenues.

NIO delivered 17,353 vehicles in the fourth quarter of 2020, including 4,873 ES8s, 7,574 ES6s and 4,906 EC6s. Total deliveries rose 111% year over year.

Revenues generated from vehicle sales amounted to $946.2 million, representing an uptick of 130% from the corresponding quarter of 2019. Other sales amounted to $71.6 million, 184.1% higher than the year-ago period on the back of increased revenues derived from the home chargers installed, accessories sold, and service and energy packages subscribed.

Importantly, vehicle margin for the quarter under review was 17.2% versus negative 6% in the year-ago period. Higher delivery volumes and decrease in the purchase price of certain materials led to the improvement in vehicle margins. Gross margin was 17.2% versus negative 8.9% in fourth-quarter 2019 on the back of robust sales and increased vehicle margin. R&D and SG&A costs were $127.1 million and $185 million, reflecting a year-over-year decrease of 19.2% and 21.9%, respectively.

Cash and cash equivalents totaled $5.8 billion as of Sep 30, 2020. Long-term debt was around $910 million.

NIO — dubbed as the Tesla (TSLA - Free Report) of China — expects first-quarter 2021 deliveries in the band of 20,000-20,500 vehicles, signaling an uptick of 427.6% at the mid-point of the range. Revenues are envisioned between $1,131.4 million and $1,158.2 million, indicating a year-over-year rise of 490.7% at the midpoint of the guided range. NIO currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Investors should note that NIO’s peer XPeng Inc. (XPEV - Free Report) is slated to report quarterly numbers on Mar 8. Meanwhile, another China EV maker Li Auto (LI - Free Report) unveiled fourth-quarter results yesterday. The company posted earnings of 2 cents a share and revenues of $635.5 million.

Zacks Top 10 Stocks for 2021

In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?

Last year's 2020Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.

AccessZacks Top 10 Stocks for 2021 today >>

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Tesla, Inc. (TSLA) - free report >>

NIO Inc. (NIO) - free report >>

XPeng Inc. Sponsored ADR (XPEV) - free report >>

Li Auto Inc. Sponsored ADR (LI) - free report >>