NIO Inc. (NYSE: NIO) stock jumped 3% on Tuesday after the company reported better-than-expected revenues for the fourth quarter.
NIO has released its unaudited financial results for the fourth quarter, reporting a revenue of 17.10 billion yuan ($2.41 billion). This figure reflected a 6.5% increase compared to last year but a 10.3% decline from the previous quarter. Analysts had anticipated slightly lower revenue, averaging $2.29 billion for the quarter.
Excluding share-based compensation expenses, the company reported an adjusted loss of (2.81) yuan or ($0.39) per share, an improvement from (3.07) yuan in the year-ago quarter but slightly down from (2.28) yuan in the third quarter of 2023. Analysts’ expectations for loss per share were at $(0.51).
NIO delivered 50,045 vehicles in the quarter, showcasing a significant increase of 25% year-over-year. However, this number reflects a decline of 9.7% from the previous quarter. As a result, vehicle revenue experienced a growth of 4.6% year-over-year but declined by 11.3% quarter-over-quarter.
The gross margin for the quarter expanded to 7.5%, a notable improvement from the previous year’s 3.9%, although it slightly decreased from the 8.0% reported in the third quarter of 2023. The expansion occurred due to an increase in vehicle margin, which rose from 6.8% a year ago to 11.9%.
As of December 31, 2023, NIO held 57.3 billion yuan ($8.1 billion) in cash and cash equivalents, restricted cash, short-term investment, and long-term time deposits.
NIO Q1 Guidance
NIO has also issued guidance for the first quarter, expecting deliveries to range between 31,000 and 33,000 units. The company foresees first-quarter revenue to range between $1.48 billion and $1.56 billion, reflecting a (1.7)% to 3.8% year-over-year growth, falling short of the consensus estimate of $2.28 billion.
NIO Inc. (NYSE: NIO) Stock Reaction
NIO stock inclined 2.81% to close at $5.48 on Tuesday. The traders had exchanged hands with 94,472,954 (94.47 million) shares compared to the average daily trading volume of 65.44 million.
