Nio Observes Rise in Share Prices Following Reveal of Narrower Losses and High Revenue
As per the latest reports, the share prices for Nio electric car manufacturing company from China experienced a rise on Wednesday, August 11, 2021. The reports confirm that the share prices for the company experienced a 1% rise after few hours of being in the trade for Wednesday.
The reason behind the rise in the share prices for the company was the report Nio shared in regards to its losses and revenue. The company shared the earnings report for the second quarter of 2021. In the report, Nio revealed that it observed narrow losses and in the same period, it experienced a surge in its revenue.
According to the company, its losses were less than what the analysts had estimated for the second quarter of 2021. Similarly, the revenue Nio generated for the second quarter of 2021 was higher than the forecast that was added by the analysts.
In the second quarter of 2021, Nio reportedly recorded a loss of 0.42 yuan per share, which translates to $0.07 per share at the time of writing. The promising aspect for the company is that the analysts had expected a much higher loss per share for the same quarter.
According to the analysts, Nio was expected to experience a loss of 0.68 yuan per share in the second quarter of 2021. The same prediction was made by the analysts at the Refinitiv data analysis firm.
This means that the company has managed to gain the tremendous trust of the investors and stakeholders in a matter of 12 months. The real demonstration of this statement is the comparison between the expected loss for the second quarter of 2021 and 2020.
In the same quarter of 2020, the company had observed a loss of 1.15 yuan per share, which is a significantly higher figure compared to Q2 2021.
In terms of revenue, Nio has shared even more promising results. The company has revealed that for the second quarter of 2021, the analysts had predicted revenue of 8.32 billion yuan, which translates to $1.28 billion. However, Nio managed to hit a revenue of 8.45 billion for the particular quarter that translates to $1.31 billion.
When it comes to year-on-year revenue, the company has reported that its revenue has increased by 127.2% compared to the year 2020.
For the third quarter of 2021, Nio analysts have shared their estimates for the revenue. According to analysts, the company is expected to generate revenue between 8.91 billion yuan and 9.63 billion. This would also demonstrate a 96.9% to 112.8% increase in revenue for Q3 2021 as compared to Q3 2020.
For the second quarter of 2021, Nio revealed that it delivered a total of 21,896 vehicles. The company revealed that it had predicted to deliver 23,000 to 25,000 EVs in the particular quarter.