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NIO's shares underperform despite EPS estimate increase and anticipated report

EditorHari Govind
Published 31/10/2023, 08:46
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect

NIO Inc.'s (NYSE:NIO) shares closed at $7.52 on Monday, marking a 1.08% rise but still trailing behind the S&P 500 (1.2%), Dow (1.58%), and Nasdaq (1.16%). This comes after a month-long underperformance during which the company's shares declined by 17.7%, falling short of both the Auto-Tires-Trucks sector's 9.27% and S&P 500's 3.58% performance.

Despite the recent underperformance, analysts are keeping an eye on NIO's upcoming report, where they anticipate earnings per share (EPS) of -$0.43, representing a year-over-year decline of 19.44%. However, revenue is expected to demonstrate a significant increase of 43.95% year-over-year, reaching $2.63 billion.

For the fiscal year, the consensus estimates predict an EPS of -$1.79 and revenue of $8.59 billion, marking changes of -38.76% and +18.34%, respectively.

InvestingPro Insights

According to InvestingPro's real-time data, NIO's Market Cap is currently at $13.38B, with a P/E Ratio standing at -4.40. Moreover, their Revenue Growth for the last 12 months as of Q2 2023 is recorded at 21.56%, despite a decrease in quarterly revenue growth by -14.77% in Q2 2023.

Two key InvestingPro Tips to consider for NIO are the declining trend in earnings per share and the company's fast cash burn rate. These factors may contribute to the company's recent underperformance and the anticipated drop in net income this year. Furthermore, the company's stock price has been quite volatile, with a significant drop over the last three months.

For a more comprehensive understanding of NIO's financial health and future prospects, consider exploring the additional 17 InvestingPro Tips available on their platform. These tips offer a more detailed insight into the company's performance, helping investors make informed decisions.

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