Shares of Chinese smart electric vehicle (EV) company Nio Inc. (NIO) are down 3.8% in pre-market trading after second-quarter revenue missed Wall Street estimates, despite stronger deliveries and slight earnings beat.
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Quarterly sales rose 9% year-over-year to $2.65 billion but fell short of the consensus estimate of $2.73 billion. Nonetheless, adjusted earnings per ADS of $0.32 beat the forecast of $0.31.
Details of Nio’s Q2 Results
In the second quarter, Nio delivered 72,056 vehicles, up 25.6% year-over-year and nearly 71% higher than Q1FY25 deliveries.
Looking ahead, Nio expects to deliver between 87,000 and 91,000 vehicles in the third quarter, representing growth of 41% to 47%. Moreover, Nio projects total revenue for Q3FY25 in the range of $3.04 to $3.19 billion, an increase of 16.8% to 22.5% year-over-year.
Is NIO Stock a Buy?
Analysts remain divided about Nio’s long-term outlook. On TipRanks, NIO stock has a Moderate Buy consensus rating based on four Buys, five Holds, and one Sell rating. The average Nio price target of $5.01 implies 21.5% downside potential from current levels. Meanwhile, NIO stock has surged 46% so far this year.
Please note that these ratings were issued before the Q2 report was released and are subject to change once analysts review the results.
