NIO Inc (NYSE:NIO) shares are trending on Monday ahead of third-quarter earnings this week. Here’s what you need to know.
- NIO is surging today. Get the latest updates here.
What To Know: Nio is due to report financial results for the third quarter before the market opens on Tuesday. Analysts expect the EV maker to report a loss of 24 cents per share and revenue of $3.26 billion, according to estimates from Benzinga Pro.
Nio reports delivery numbers on a monthly basis. The company said last month that it delivered 87,071 vehicles in the third quarter, which was up 40.8% on a year-over-year basis. Cumulative deliveries grew to 872,785 as of Sept. 30.
On Sept. 20, Nio launched its ES8 flagship premium SUV, with user deliveries starting shortly after. Investors will be looking for any updates on the vehicle launch. Earlier this month, Nio said it delivered 40,397 vehicles in October, reaching a new monthly record as the ONVO L90 SUV hit record deliveries on “strong growth momentum.”
In the second quarter, Nio missed revenue estimates of $2.76 billion, reporting $2.65 billion in total revenue as vehicle deliveries increased 71.2% from the first quarter. Nio guided for third-quarter revenue of $3.05 billion to $3.19 billion.
“Starting from the second quarter, our comprehensive cost reduction and efficiency improvement initiatives have started to yield results,” said Stanley Yu Qu, CFO of Nio. “We are now approaching a structural inflection point in our financials, with positive momentum building toward a sustainable virtuous cycle and continued performance improvements.”
Nio’s management team will hold an earnings call at 7 a.m. ET Tuesday morning to discuss the quarter with investors and analysts.
NIO Analysis: Nio stock is trading within its 52-week range of $3.02 to $8.02, reflecting a significant recovery from its lows earlier in the year. Year-to-date, Nio has shown a strong performance, indicating a positive sentiment among investors despite the volatility typical of the EV sector.
Currently, Nio is trading approximately 16% below its 50-day moving average of $6.95, suggesting that the stock may be in a consolidation phase after recent gains. The 200-day moving average sits at $4.99, indicating a more bullish long-term trend.
Resistance is identified at $6.32, which could act as a significant hurdle for the stock in the near term. If Nio can break through this level, it may pave the way for a retest of the 52-week high of $8.02. Conversely, the absence of a clear support level suggests that the 50-day moving average may serve as a critical threshold to watch, as a drop below this could trigger further selling pressure.
NIO Price Action: Nio shares were up 4.84% Monday morning, trading at $5.85 at the time of publication, according to Benzinga Pro.
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