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NIO Q4 Loss Widens Y/Y, Sales Up, Vehicle Margins Plummet

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NIO Inc. (NIO - Free Report) incurred a loss per American Depositary Share (ADS) of 51 cents in the fourth quarter of 2022, wider than the year-ago loss of 21 cents amid lower vehicle margins and higher operating expenses, despite improved deliveries. This China-based electric vehicle (EV) maker posted revenues of $2,329 million, up 62.2% year over year on the back of robust deliveries.

NIO Inc. Price, Consensus and EPS Surprise

NIO Inc. Price, Consensus and EPS Surprise

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

Key Details

NIO delivered 40,052 vehicles in the fourth quarter, up 60% year over year, including 20,824 SUVs and 19,228 sedans.

The revenues generated from vehicle sales amounted to $2,139.9 million, rising 60.2% year over year. The increase in vehicle sales was mainly led by higher deliveries. Other sales amounted to $189.1 million, up 90.3%. The increase was due to an increase in revenues from the rendering of research and development services.

Gross profit came at $90.1 million, decreasing 63.4% year over year. The vehicle margin in the reported quarter declined to 6.8% from 20.9%. Increased battery cost per unit and higher inventory provisions affected vehicle margins. The gross margin was 3.9%, down from 17.2% in fourth-quarter 2021.

Research & development and selling, general & administrative costs were $577.1 million and $511.4 million, respectively, reflecting a year-over-year surge of 117.7% and 49.6%.

Cash and cash equivalents totaled $2,883.4 million as of Dec 31, 2022. The long-term debt was $1,578.3 million as of the same date.

For the first quarter of 2023, NIO expects deliveries in the band of 31,000-33,000 vehicles, signaling a year-over-year uptick of 20.3-28.1%. Revenues are envisioned between $1,584 million and $1,674 million, indicating a year-over-year increase of 10.2-16.5%.

Zacks Rank & Key Picks

NIO currently carries a Zacks Rank #4 (Sell).

A few better-ranked players in the auto space include BMW AG (BAMXF - Free Report) , Wabash National (WNC - Free Report) and Modine Manufacturing (MOD - Free Report) , all sporting a Zacks Rank #1 (Strong Buy).

BMW AG is a multi-brand automobile manufacturer that focuses on the premium segments of the worldwide automobile and motorcycle markets and has three brands: BMW, MINI and Rolls-Royce. The Zacks Consensus Estimate for BAMXF’s 2023 sales implies year-over-year growth of 1.88%.

Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings implies year-over-year growth of 13.06% and 24%, respectively.

Modine operates primarily in a single industry consisting of the manufacture and sale of heat transfer equipment. The Zacks Consensus Estimate for MOD’s 2023 sales and earnings implies year-over-year growth of 11.43% and 43.09%, respectively.

You can see the complete list of today’s Zacks #1 Rank stocks here.

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