Nio Q4 Earnings Preview: What Investors Should Watch As Shares Near 52-Week Lows

Electric vehicle company Nio Inc – ADR NIO will report fourth-quarter financial results before market open Tuesday, March 5.

Here's a look at the key earnings estimates, analyst ratings and key items to watch.

Earnings Estimates: Nio beat earnings per share estimates for the third quarter while missing revenue estimates from analysts according to data from Benzinga Pro.

Analysts saw the company posting a loss of 55 cents per share and revenue of $2.34 billion in the fourth quarter.

The company reported revenue of $2.33 billion in the fourth quarter of the prior year and revenue of $2.61 billion in the most recent third quarter. Estimates from analysts saw the company posting a small year-over-year increase in revenue, but a figure down sequentially. The company missed revenue estimates from analysts in the last two straight quarters.

Nio reported a loss of 44 cents per share in the fourth quarter of the previous year.

Guidance from the company called for revenue to be in the range of $2.20 billion to $2.29 billion.

Related Link: Nio Enters Technology Licensing Agreement: What Investors Should Know

What Analysts Are Saying: A look at recent analyst activity for Nio showed several downgrades and price target reductions. Here are several of the latest analyst ratings changes and updates.

JPMorgan: Downgrade from Neutral to Underweight, lowered price target from $8.50 to $5.

Bank of America: Downgrade from Buy to Neutral, no price target

Mizuho: Buy rating, lowered price target from $18 to $15

Key Items to Watch: One of the key items for the company could be an update on guidance for vehicle production and deliveries.

Nio reported fourth-quarter deliveries of 50,045 units, which was up 25% year-over-year. The company previously guided for fourth-quarter deliveries in a range of 47,000 to 49,000 units, which it surpassed.

The company reported January deliveries of 10,055 units, which was up 18.2% year-over-year. The company also reported February deliveries of 8,132 units, which was down 33.1% year-over-year.

The company delivered 160,038 vehicles in 2023, a figure that was up 30.7% year-over-year. Early figures in 2024 show a decline in the company's growth rate, which could be an item for investors to watch.

Nio also unveiled its ET9 luxury sedan in December with a starting price of around $111,000. Investors would like an update on how vehicle pre-orders are shaping up and when production and deliveries will begin.

NIO Price Action: Nio shares are down 6.33% to $5.41 on Monday versus a 52-week trading range of $5.30 to $16.18. Shares of Nio are down 39% over the last year.

Read Next: Forget Self-Driving: Nio’s ET9 Is Snow-Defying, Thanks To Its Innovative Chassis System

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