Why NIO Stock Is Higher Today

Analysts are having a review ahead to earnings, and one expects a certain shock.

What came about

Shares of Chinese electrical automobile maker NIO (NYSE:NIO) maintain been Trading better on Monday, after a Wall Avenue analyst shared an upbeat outlook for the corporate earlier than its second-quarter earnings myth. 

As of 1 p.m. EDT nowadays, NIO’s American depositary shares maintain been up about 3% from Friday’s closing tag.

So what

In a brand original new released on Monday morning, Deutsche Bank analyst Edison Yu stated that he expects NIO’s second-quarter results to near in above Wall Avenue’s consensus estimate. NIO will myth its results after the U.S. markets shut on Wednesday, Aug. 9. 

Yu and his team estimate that NIO will myth a lack of 0.44 Chinese yuan per part (about $0.07) on income of 8.57 billion Chinese yuan ($1.32 billion). Both numbers would be better than Wall Avenue expects. Analysts polled by Thomson Reuters presently quiz NIO to myth a lack of $0.11 per part on income of $1.28 billion. 

That will almost definitely perhaps perhaps no longer be a radical shock, but it absolutely’s a cause for optimism, and that is the reason potentially why the inventory is Trading better nowadays. 

A NIO ES6, an upscale five-passenger electric SUV, is shown leading a NIO EC6 on a mountain road.

NIO’s gross sales leaders are the midsize ES6, foreground, and its sporty EC6 sibling. Image offer: NIO.

Now what

While Yu and his team quiz NIO to beat Wall Avenue’s estimates, they’re no longer so upbeat about the corporate’s prospects for high enhance within the third quarter amid an ongoing global shortage of semiconductors. 

Yu’s team expects that NIO will data to about 25,000 deliveries within the third quarter, which would be up 14.2% from 21,896 within the second quarter, with income between 9 billion yuan and 9.5 billion yuan ($1.39 billion to $1.46 billion). That’s no longer harmful enhance, but it absolutely’s no longer what auto investors could almost definitely perhaps well maintain cause to quiz absent the chip shortage. 

We will procure out extra when NIO stories on Wednesday evening. 

This text represents the realizing of the author, who could almost definitely perhaps disagree with the “legitimate” advice living of a Motley Fool top price advisory carrier. We’re motley! Questioning an investing thesis — even one among our maintain — helps us all mediate critically about investing and invent selections that again us turn out to be smarter, happier, and richer.

John Rosevear has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends NIO Inc. The Motley Fool has a disclosure policy.”>

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