Categories AlphaGraphs, Analysis, Earnings

Earnings preview: Nio’s (NIO) cash crunch leaves market apprehensive ahead of Q3 report

The electric car market in China witnessed hectic activity this year even as competition between local player Nio, Inc. (NYSE: NIO) and Tesla (NASDAQ: TSLA) intensified, with the latter making significant inroads into the fast-growing market. As the year comes to a close, Nio is struggling with multiple headwinds, mainly the crippling cash crunch that has pushed the company to the verge of bankruptcy.

The company has been busy ramping up its portfolio, including new launches, as growth prospects weakened after the government rolled back the subsidies enjoyed by Chinese electric vehicle makers.

Nio (NIO) beats revenue estimates for Q2; cancels conference call

After its disappointing second-quarter results spurred a stock sell-off, Nio embarked on a reorganization with focus on cost-cutting and workforce reduction. When the company reports third-quarter results on December 30, before the opening bell, the market will be closely following the event for updates on its financial health. The announcement has been delayed for several weeks, probably due to a lack of progress in the efforts to raise capital.

Liquidity Crisis

Meanwhile, the recent exit of chief financial officer Louis Hsieh has made things tough for the automaker. Earlier, CEO William Bin Li had hinted at more layoffs and separation of the non-core businesses before year-end, as part of streamlining the operations.

Related: Nio Q1 2019 Earnings Conference Call Transcript

Market watchers expect September-quarter revenues to grow at a below-trend rate of about 9% to $230.08 million, which is below the management’s outlook. The consensus estimate for the bottom-line is a loss of $0.34 per share, which represents an improvement from the last quarter.

Revival Plan

The modest pickup in deliveries in recent months, aided mainly by customers’ positive response to the revamped SUV ES6, has come as a relief to the stakeholders. Since its cash reserve is about to exhaust, the company urgently needs to seek additional funding as it enters 2020. In brief, it’s time for the management to think out of the box and come up with a foolproof revival strategy before Tesla further eats into Nio’s already-weak market share.

Looking Back

In the second quarter, revenues more than doubled to $220 million and surpassed the estimates. Net loss came in at $0.45 per share and missed the Street view. While deliveries increased year-over-year, margins deteriorated to -24%.

Also read: Tesla gets another boost after securing $1.4-bln loan

For Nio’s shares, 2019 has been a disastrous year, though they had a positive start. The stock dropped 61% since the beginning of the year and is trading about 78% below the levels seen at the time of the company’s IPO a few years ago.

We’re on Apple News! Follow us to receive the latest stock market, earnings and financial news at your fingertips

Most Popular

CCL Earnings: Carnival Corp. Q4 2024 revenue rises 10%

Carnival Corporation & plc. (NYSE: CCL) Friday reported strong revenue growth for the fourth quarter of 2024. The cruise line operator reported a profit for Q4, compared to a loss

Key metrics from Nike’s (NKE) Q2 2025 earnings results

NIKE, Inc. (NYSE: NKE) reported total revenues of $12.4 billion for the second quarter of 2025, down 8% on a reported basis and down 9% on a currency-neutral basis. Net

FDX Earnings: FedEx Q2 2025 adjusted profit increases; revenue dips

Cargo giant FedEx Corporation (NYSE: FDX), which completed an organizational restructuring recently, announced financial results for the second quarter of 2025. Second-quarter earnings, excluding one-off items, were $4.05 per share,

Comments

  1. Pingback: Lincoln Georgis
  2. Pingback: Arie Baisch
  3. Pingback: MILF City
  4. Pingback: domain-name
  5. Pingback: natural sunscreen
  6. Pingback: valentines gift
  7. Pingback: Click Here
  8. Pingback: Click Here
  9. Pingback: Click Here
  10. Pingback: Click Here
  11. Pingback: Click Here
  12. Pingback: Click Here
  13. Pingback: Click Here
  14. Pingback: Click Here
  15. Pingback: Click Here
  16. Pingback: Click Here
  17. Pingback: Click Here
  18. Pingback: Click Here
  19. Pingback: Click Here
  20. Pingback: Click Here
  21. Pingback: Click Here
  22. Pingback: Click Here
  23. Pingback: Click Here
  24. Pingback: Click Here
  25. Pingback: Click Here
  26. Pingback: Click Here
  27. Pingback: Click Here
  28. Pingback: no code robotics
  29. Pingback: Click Here
  30. Pingback: Click Here
  31. Pingback: Click Here
  32. Pingback: Click Here
  33. Pingback: Click Here
  34. Pingback: Click Here
  35. Pingback: Click Here
  36. Pingback: Click Here
  37. Pingback: Click Here
  38. Pingback: Click Here
  39. Pingback: Click Here
  40. Pingback: Click Here
  41. Pingback: Click Here
  42. Pingback: Click Here
  43. Pingback: Click Here
  44. Pingback: Click Here
  45. Pingback: Click Here
  46. Pingback: Click Here
  47. Pingback: Click Here
  48. Pingback: Click Here
  49. Pingback: Click Here
  50. Pingback: Click Here
  51. Pingback: Click Here
  52. Pingback: Click Here
  53. Pingback: Click Here
  54. Pingback: Click Here
  55. Pingback: Click Here
  56. Pingback: Click Here
  57. Pingback: Click Here
  58. Pingback: Click Here
  59. Pingback: Click Here
  60. Pingback: Click Here
  61. Pingback: Click Here
  62. Pingback: Click Here
  63. Pingback: Click Here
  64. Pingback: Click Here
  65. Pingback: Click Here
  66. Pingback: Click Here
  67. Pingback: Click Here
  68. Pingback: Click Here
  69. Pingback: Click Here
  70. Pingback: Click Here
  71. Pingback: Click Here
  72. Pingback: Click Here
  73. Pingback: Click Here
  74. Pingback: domain
  75. Pingback: buy-domains
  76. Pingback: Google reviews
  77. Pingback: 2023 Books
  78. Pingback: memorial
  79. Pingback: IRA Empire
  80. Pingback: Chirurgie Tunisie
  81. Pingback: Higher education
  82. Pingback: Admission Process
  83. Pingback: Economics
  84. Pingback: الاقتصاد
  85. Pingback: pharmacists
  86. Pingback: MBA
  87. Pingback: Econometrics
  88. Pingback: led controsoffitto
  89. Pingback: abducteurs muscles
  90. Pingback: glucofort
  91. Pingback: Fiverr Earn
  92. Pingback: Fiverr Earn
  93. Pingback: Fiverr Earn
  94. Pingback: Fiverr Earn
  95. Pingback: fiverrearn.com
  96. Pingback: fiverrearn.com
  97. Pingback: fiverrearn.com
  98. Pingback: shipping broker
  99. Pingback: fiverrearn.com
  100. Pingback: fiverrearn.com
  101. Pingback: fiverrearn.com
  102. Pingback: fiverrearn.com
  103. Pingback: exotic bully
  104. Pingback: jute vs sisal rug
  105. Pingback: isla mahara
  106. Pingback: isla mahara
  107. Pingback: french bulldog
  108. Pingback: zodiac jewelry
  109. Pingback: clima birmingham
  110. Pingback: frenchie colors
  111. Pingback: Silver earrings
  112. Pingback: future university
  113. Pingback: frenchie puppies
  114. Pingback: lean six sigma
  115. Pingback: FUE
  116. Pingback: FUE
  117. Pingback: FUE
  118. Pingback: Commercial moving
  119. Pingback: FiverrEarn
  120. Pingback: FiverrEarn
  121. Pingback: Fiverr
  122. Pingback: Fiverr.Com
  123. Pingback: FiverrEarn
  124. Pingback: FiverrEarn
  125. Pingback: Streamer
  126. Pingback: FiverrEarn
  127. Pingback: FiverrEarn
  128. Pingback: partners
  129. Pingback: neurodrine website
  130. Pingback: Betting
  131. Pingback: FiverrEarn
  132. Pingback: FiverrEarn
  133. Pingback: FiverrEarn
  134. Pingback: FiverrEarn
  135. Pingback: live sex cams
  136. Pingback: live sex cams
  137. Pingback: live sex cams
  138. Pingback: FiverrEarn
  139. Pingback: FiverrEarn
  140. Pingback: FiverrEarn
  141. Pingback: FiverrEarn
  142. Pingback: FiverrEarn
  143. Pingback: FiverrEarn
  144. Pingback: A2 Ghee
  145. Pingback: dictionary
  146. Pingback: Kuliah Termurah
  147. Pingback: FiverrEarn
  148. Pingback: FiverrEarn
  149. Pingback: FiverrEarn
  150. Pingback: cheap sex cams
  151. Pingback: fullersears.com
  152. Pingback: live sex cams
  153. Pingback: live sex cams
  154. Pingback: rare breed-trigger
  155. Pingback: 늑대닷컴
  156. Pingback: Pola slot
  157. Pingback: One Peace AMV
  158. Pingback: nang delivery
  159. Pingback: allgame
  160. Pingback: 918kiss
  161. Pingback: หวย24
  162. Pingback: Skincare trends
  163. Pingback: pg slot
  164. Pingback: bermain slot
  165. Pingback: megagame
  166. Pingback: SaaS Law Firm
  167. Pingback: ItMe.Xyz
  168. Pingback: ItMe.Xyz
  169. Pingback: ItMe.Xyz
  170. Pingback: Bulk URL Shortener

Comments are closed.

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top