Shares of Chinese EV major NIO (NYSE:NIO) (HK:9866) are in focus today after the company reported a lower-than-expected set of numbers for the fourth quarter. Despite a year-over-year increase of 6.5%, revenue of $2.41 billion lagged expectations by $110 million. Further, earnings per American Depository Share (EPDAS) of -$0.39 missed the cut by $0.06.
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Total vehicle deliveries for the quarter increased by 25% year-over-year to 50,045 units. However, this was a 9.7% sequential decline in NIO’s delivery numbers. Still, the company’s vehicle margin improved by nearly 510 basis points to 11.9%. Concurrently, its gross profit expanded by 105.7% over the prior year period to $180.2 million. The company had a cash pile of nearly $8.1 billion at the end of December 2023.
For the upcoming quarter, NIO expects vehicle deliveries in the range of 31,000 to 33,000 units. Total revenue for the quarter is anticipated to be between $1.48 billion and $1.56 billion, implying a year-over-year change of -1.7% to 3.8%.
What Is the Price Target for NIO?
NIO’s share price has tanked by nearly 51% over the past six months amid fierce competition in the Chinese EV market. Overall, the Street has a Moderate Buy consensus rating on NIO alongside an average price target of $10.03. However, analysts’ views on the stock could see a revision following today’s earnings report.
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