We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
NIO Inc. (NIO - Free Report) incurred a loss per American Depositary Share (ADS) of 36 cents in the third quarter of 2022, wider than the year-ago loss of 28 cents amid higher operating expenses, despite improved deliveries. The China-based electric vehicle (EV) maker posted revenues of $1,827.8 million, up 32.6% year over year on the back of robust deliveries.
Key Details
NIO delivered 31,607 vehicles in the third quarter, up 29.3% year over year, including 22,859 SUVs and 8,748 sedans.
The revenues generated from vehicle sales amounted to $1,677.5 million, rising 38.2% year over year. The increase in vehicle sales was mainly led by higher deliveries. Other sales amounted to $150.3 million, down 8.5%. The decline was due to lower revenues derived from automotive regulatory credits.
The gross profit came at $243.9 million, decreasing 12.9% year over year. The vehicle margin in the reported quarter declined to 16.4% from 18%. Increased battery cost per unit affected vehicle margins. The gross margin was 13.3%, down from 20.3% in third-quarter 2021.
The research & development and selling, general & administrative costs were $413.9 million and $381.3 million, respectively, reflecting a year-over-year surge of 146.8% and 48.6%.
Cash and cash equivalents totaled $2,541.7 million as of Sep 30, 2022. The long-term debt was $1,762.4 million as of the same date.
For the fourth quarter, NIO expects deliveries in the band of 43,000-48,000 vehicles, signaling a year-over-year uptick of 71.8-91.7%. Revenues are envisioned between $2,442 million and $2,703 million, indicating a year-over-year increase of 75.4-94.2%.
BYD: China-based BYD is principally engaged in the research, manufacture, and distribution of automobiles, secondary rechargeable batteries as well as mobile phone components. The company stands to benefit from robust demand for green vehicles and batteries in China. The firm’s rechargeable battery business provides lithium-ion and nickel batteries that are essential for the development of green vehicles.
The rising deliveries of Han and Tang models are driving BYD's top line. Solid execution capabilities and expansion efforts outside China, particularly in the European market, will further fuel the stock. The company’s revenues have been growing rapidly and unlike other pure EV players based in China, BYD has been making profits for years. The consensus mark for 2022 earnings and sales implies year-over-year growth of 342.4% and 77%, respectively.
XPeng: This rising EV star of China is poised for speedy sales growth, thanks to the soaring popularity of the existing models, including G9, G3i and G3 SUVs as well as P7 and P5 sedans. In addition to vehicle sales, XPeng also generates revenues from after-sales services, and ride-hailing and supercharging services. We expect XPeng’s commitment to innovation and continuous R&D spending to bolster its standing in the market and fortify its EV game.
With the mission of bringing Smart EVs to the China auto market through continuous innovation in core vehicle systems, driverless technology and smart connectivity, XPeng is set to become a name to reckon with in the coming years. The consensus mark for 2022 and 2023 sales implies year-over-year growth of 47% and 92%, respectively.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
NIO Incurs Wider Y/Y Q3 Loss, Expects Robust Sales in Q4
NIO Inc. (NIO - Free Report) incurred a loss per American Depositary Share (ADS) of 36 cents in the third quarter of 2022, wider than the year-ago loss of 28 cents amid higher operating expenses, despite improved deliveries. The China-based electric vehicle (EV) maker posted revenues of $1,827.8 million, up 32.6% year over year on the back of robust deliveries.
Key Details
NIO delivered 31,607 vehicles in the third quarter, up 29.3% year over year, including 22,859 SUVs and 8,748 sedans.
The revenues generated from vehicle sales amounted to $1,677.5 million, rising 38.2% year over year. The increase in vehicle sales was mainly led by higher deliveries. Other sales amounted to $150.3 million, down 8.5%. The decline was due to lower revenues derived from automotive regulatory credits.
The gross profit came at $243.9 million, decreasing 12.9% year over year. The vehicle margin in the reported quarter declined to 16.4% from 18%. Increased battery cost per unit affected vehicle margins. The gross margin was 13.3%, down from 20.3% in third-quarter 2021.
The research & development and selling, general & administrative costs were $413.9 million and $381.3 million, respectively, reflecting a year-over-year surge of 146.8% and 48.6%.
Cash and cash equivalents totaled $2,541.7 million as of Sep 30, 2022. The long-term debt was $1,762.4 million as of the same date.
For the fourth quarter, NIO expects deliveries in the band of 43,000-48,000 vehicles, signaling a year-over-year uptick of 71.8-91.7%. Revenues are envisioned between $2,442 million and $2,703 million, indicating a year-over-year increase of 75.4-94.2%.
Zacks Rank & Key Picks
NIO currently carries a Zacks Rank #4 (Sell).
A few better-ranked China-based EV players include BYD. Co (BYDDY - Free Report) and XPeng Inc. (XPEV - Free Report) . While BYDDY sports a Zacks Rank #1 (Strong Buy), XPEV carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
BYD: China-based BYD is principally engaged in the research, manufacture, and distribution of automobiles, secondary rechargeable batteries as well as mobile phone components. The company stands to benefit from robust demand for green vehicles and batteries in China. The firm’s rechargeable battery business provides lithium-ion and nickel batteries that are essential for the development of green vehicles.
The rising deliveries of Han and Tang models are driving BYD's top line. Solid execution capabilities and expansion efforts outside China, particularly in the European market, will further fuel the stock. The company’s revenues have been growing rapidly and unlike other pure EV players based in China, BYD has been making profits for years. The consensus mark for 2022 earnings and sales implies year-over-year growth of 342.4% and 77%, respectively.
XPeng: This rising EV star of China is poised for speedy sales growth, thanks to the soaring popularity of the existing models, including G9, G3i and G3 SUVs as well as P7 and P5 sedans. In addition to vehicle sales, XPeng also generates revenues from after-sales services, and ride-hailing and supercharging services. We expect XPeng’s commitment to innovation and continuous R&D spending to bolster its standing in the market and fortify its EV game.
With the mission of bringing Smart EVs to the China auto market through continuous innovation in core vehicle systems, driverless technology and smart connectivity, XPeng is set to become a name to reckon with in the coming years. The consensus mark for 2022 and 2023 sales implies year-over-year growth of 47% and 92%, respectively.