Nio's Units Ramp But Margins Remain Pressured: Analysts Provide Q1 Takeaways

Zinger Key Points
  • Nio’s gross profits grew 201% Y/Y but were down 62% Q/Q, missing expectations, one analyst says.
  • The company guided to FQ2 revenues above consensus and up ~70% sequentially, another analyst notes.

Nio Inc NIO shares were volatile on Friday morning after the company reported results for its first quarter.

The results came amid an exciting earnings season. Here are some key analyst takeaways.

Goldman Sachs On Nio

Analyst Tina Hou maintained a Neutral rating and price target of $4.10.

Nio reported first-quarter revenues of 9.9 billion yuan (~$1,366,063,578 U.S. dollars), representing a 7% year-on-year and 42% sequential decline, and coming in lower than the consensus, Hou said in a note. The company's gross profits of 488 million yuan (~$67,337,275.36 U.S. dollars) grew by 201% year-on-year, but declined 62% sequentially, she added.

"The gross profit miss was mainly on the revenue mix," the analyst wrote. Management guided to vehicle sales volume of 54K to 56K units for the second quarter, "implying June monthly sales volume of 19k units at the mid-point," she further stated.

Check out other analyst stock ratings.

Mizuho Securities On Nio

Analyst Jason Getz reiterated a Neutral rating and price target of $5.50.

Although Nio reported weaker-than-expected revenues and earnings for the first quarter, it guided to June quarter revenues above consensus and up around 70% sequentially, Getz said. The company guided to deliveries at 55K units, higher than consensus of 44.2K, and continues to "use promotions to improve sales," he added.

Although Nio's gross margins are improving as units ramp, promotions and lower average selling price of Onvo remained "a potential drag," the analyst stated. "We are estimating JunQ GM at ~9% (vs. cons. of 8.8%), with better volumes and NIO noting double-digit vehicle GMs and improving through 2H24," he further wrote.

NIO Price Action: Shares of Nio had declined by 1.12% to $4.85 at the time of publication on Friday.

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Photo: Courtesy Nio

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