Nio (NIO) reported a mixed first quarter and forecast Q2 deliveries will barely edge higher as the global chip shortage continues to weigh. Nio stock fell slightly overnight.
Estimates: Two analysts on Wall Street forecast that Nio will narrow net losses per share to 16 cents from 25 cents a year ago. Revenue is seen vaulting 423% to $1.02 billion.
Results: Loss of 48 cents a share on revenue of $1.22 billion. Gross margin improved to 19.5% from 17.2% in Q4 and -12.2% a year earlier.
In Q1, Nio delivered a record 20,060 electric SUVs, up 423% year over year. It faced easy comparisons after a hit to sales from the coronavirus pandemic in Q1 2020.
Outlook: Q2 revenue of $1.24 billion-$1.3 billion, above consensus for $1.21 billion, on deliveries of 21,000-22,000 vehicles, little changed from Q1.
“The overall demand for our products continues to be quite strong, but the supply chain is still facing significant challenges due to the semiconductor shortage,” said Chairman and CEO William Bin Li.
After Hours: Three Stocks Flash Buy Signals Following Disappointing ‘Up’ Session
Shares fell 1.1% Friday morning after closing down 5.3% at 38.99 in Thursday’s stock market trading. Nio stock bounced off the 200-day line earlier in April but has hit resistance at the 50-day line, according to MarketSmith chart analysis.
Tesla stock slumped 2.5% Thursday, undercutting its 50-day line. Ford (F), which recently partnered with Nio on EV charging, plunged 9.6%. On Wednesday, Ford crushed Q1 earnings views but warned the chip shortage could cut Q2 production in half and last until 2022.
Among other Chinese EV stocks, Xpeng Motors (XPEV) fell 3.7%, and Li Auto (LI) lost 3%.
IBD Live: A New Tool For Daily Stock Market Analysis
Chip Shortage Hits Nio Stock
Starting March 29, Nio briefly suspended production at a factory for five days due to the chip crisis. The supply crunch forced Nio to trim Q1 delivery forecast a bit, but the hot EV startup went on to beat its own cautious view, delivering a record 20,060 vehicles last quarter.
But in early April, CEO William Li warned that Nio may lack the chip stockpiles needed to meet its Q2 production target of 7,500 EVs.
On Monday, Tesla said it switched to “new microcontrollers, while simultaneously developing firmware for new chips made by new suppliers.” Still, CEO Elon Musk acknowledged that the semiconductor shortage is a “huge problem.”
Yet the company is proceeding with its global expansion goals, amid rising competition at home that has hit Nio stock.
On Wednesday, Nio confirmed via Twitter that it eyes a “presence in Norway,” where Tesla has seen huge success. It also announced a press conference May 6 with the hashtag #NIONorway.
Nio’s looming Norway entry comes after rival startup Xpeng Motors began exporting EVs to Europe late last year.
Nio began selling the EC6, a luxury electric coupe SUV, last September and it has been selling briskly. Nio unveiled the ET7 electric sedan in January and expects to start selling the EV in 2022.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
YOU MAY ALSO LIKE:
The Next Tesla May Emerge From This Explosion Of New EV Stocks
Is Nio Stock A Buy Right Now As Chinese Electric Cars Boom?
While Tesla Soars, Electric Cars Face A Huge Test
Stocks To Watch: Top-Rated IPOs, Big Caps And Growth Stocks
Find The Latest Stocks Hitting Buy Zones With MarketSmith
Credit: Source link