NIO top line beats estimates, but revenue guidance misses

NIO (NIO) reported fourth quarter revenue which beat Wall Street expectations, though its first quarter revenue and delivery guidance came in below expectations.

These are the results for the Chinese electric vehicle company's fourth quarter 2021 results, versus Wall Street consensus expectations.

Adjusted loss per ADR: — 16 cents vs -16 cents expected

Revenue: $1.55 billion vs $1.52 billion expected

Deliveries: 25,034 vs 24,945 estimated

NIO is forecasting first quarter 2022 revenue to come in between $1.51 billion and $1.57 billion. The Street was expecting sales of $1.66 billion.

Delivery guidance for the current quarter came in between 25,000 to 26,000 vehicles versus Street expectations of 27,958 vehicles.

"We concluded the year of 2021 on a strong note with an annual delivery of 91,429 vehicles in total, representing an increase of 109.1% year-over-year, despite all the challenges including the supply chain volatilities in particular," William Bin Li, founder, chairman and CEO of NIO, said in a statement.

Analysts will be listening during the company's earnings call for any details about rising manufacturing costs, the ongoing auto chip shortage and possible impacts from the recent COVID-19 lockdowns in China. They're also looking for commentary on how the company is navigating any delisting concerns surrounding Chinese companies trading in the U.S.

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Morgan Stanley analyst Tim Hsiao recently cut his price target on NIO to $34 from $66, while maintaining a Buy rating. Hsiao believes NIO should be able to weather headwinds such as “geopolitical tensions, pervasive COVID curbs and ADR de-listing risks" better than some of the other EV makers.

NIO recently listed on the Hong Kong exchange. Its peers XPeng (XPEV) and Li Auto (LI) began trading in Hong Kong last year.

The EV-maker's American depository shares are down around 30% year to date. Higher interest rates and rising inflation have taken the air out high-growth companies that aren't yet profitable.

Wall Street is bullish on the Chinese EV maker, with 33 Buy, 3 Hold, and 0 Sell ratings. The average analyst price target is $47/ADR.

Ines is a markets reporter covering stocks from the floor of the New York Stock Exchange. Follow her on Twitter at @ines_ferre

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