Shares of NIO Inc.
sank 5.7% toward a three-month low in premarket trading Wednesday, after the China-based electric vehicle maker reported a wider-than-expected second-quarter loss as revenue rose above forecasts but gross margins contracted, and provided a downbeat revenue outlook. The net loss widened to RMB$2.26 billion ($337.3 million), or RMB1.68 a share, from RMB773.6 million, or RMB0.42 a share, in the year-ago period. Excluding nonrecurring items, the adjusted loss per American depositary share (ADS) was RMB1.34, compared with the FactSet loss consensus of RMB1.13. Total revenue grew 21.8% to RMB10.29 billion ($1.54 billion), above the FactSet consensus of RMB9.77 billion, as deliveries increased 14.4% to 25,059 EVs. Gross margin contracted to 13.0% from 18.6%, due to expanded investment in power and service network. For the third quarter, the company expects revenue of between RMB12.85 billion and RMB13.60 billion, below the FactSet consensus of RMB16.43 billion, and deliveries of between 31,000 and 33,000 EVs. “We achieved solid financial results for the second quarter of 2022 in spite of the tremendous challenges and cost volatilities,” said Chief Financial Officer Steven Wei Feng. The stock has dropped 12.9% over the past three months through Tuesday, while the iShares China Large-Cap ETF
has slumped 13.7% and the S&P 500
has declined 6.1%.
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Turkish President Recep Tayyip Erdogan (R) and Finnish President Sauli Niinisto (L) deliver a joint press conference held after their...Read more
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