Shareholders of Nio (NYSE:NIO) are on high alert as the electric vehicle (EV) maker has confirmed that it will report Q4 earnings after the bell today. NIO stock is currently down more than 30% year-to-date as supply chain issues and rising interest rates loom. In addition, Nio investors have been threatened by a possible delisting from U.S. exchanges, which has also hurt shares. As a result, Nio’s fourth-quarter results will mark a major catalyst for the China-based company. Let’s take a look at three things that investors should watch when Nio reports earnings today.
NIO Stock Earnings: Watch for Revenue and EPS
For revenue, analysts on average are expecting $1.53 billion, which would imply year-over-year (YOY) growth of 48.7%. Revenue will largely be driven by the amount of vehicles that Nio has delivered during the quarter. During February, Nio delivered 6,131 vehicles, which was up 9.9% YOY. For 2022, Nio has delivered a total of 15,783 vehicles, which is up 23.3% YOY so far.
Furthermore, InvestorPlace’s Luke Lango reports that EV sales in China are currently in high demand. In January, more than 370,000 EVs were registered, which was up 115% YOY. China has also announced that it will extend its EV subsidy program until 2025, which should help drive up demand as well. Additionally, like in the U.S., gas prices are rising higher in China.
For earnings per share (EPS), analysts are expecting a loss of 21 cents. The high estimate comes in at a loss of 15 cents, while the low estimate comes in at a loss of 32 cents. Profitability is one of Nio’s key issues, and investors should expect to hear updates on how Nio plans to become profitable.
Watch for Guidance When Nio Reports Earnings
The high demand for EVs and the subsidy program in China should help Nio report impressive delivery guidance. During the company’s last earnings report, Nio disclosed delivery and revenue guidance, so investors should expect to see the same this time. Nio reported in its Q3 earnings that it expects to deliver between 23,500 and 25,500 vehicles during Q4.
For Q1 revenue, analysts are expecting $1.66 billion. For EPS, analysts are expecting a loss of 16 cents. A beat on either metric could help drives shares of NIO stock higher.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
