NIO’s surprise win comes directly on the heels of Tesla, a competitor, announcing the delivery of its first cars made in China, NIO’s home market.
NIO went public on the New York Stock Exchange in 2018 for $6.26 per share. Its value has plunged as a public company, seeing its per-share price fall to as little as $1.19. Today, after its earnings report, NIO shares are up more than $1 apiece, to $3.47 per share as of the time of writing. That new price represents a gain of a touch less than 44% in today’s trading.
NIO managed to beat both revenue and profit expectations in the quarter. And, the company’s forecast for its next quarter’s car deliveries show a sharp rise in automotive deliveries.
According to Yahoo Finance, investors expected NIO to lose $0.34 per share in Q3 on an adjusted basis off revenue of $230.8 million. In fact, NIO reported $257.0 million in revenue leading to an adjusted $0.33 per share loss. NIO managed a top-and-bottom beat while growing its total revenues by 21.8% compared to the sequentially preceding quarter, and 25% compared to the year-ago period.
While NIO did beat expectations, it remains a company deep in its investment cycle. That’s a polite way of saying that it loses lots of money. For example, in its most recent quarter, NIO’s gross margin on selling automobiles came to -6.8%. That was a bit worse than its year-ago result of -4.3%, if better than what it managed earlier in Q2 2019.
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