Wall Street expects Nio's revenue to be RMB 17.385 billion in the second quarter, exceeding the upper end of the EV maker's guidance range as deliveries unexpectedly beat guidance.

Nio (NYSE: NIO) is expected to report its financial results for the second quarter of 2024 in about six hours, and now it's time to take a look at what Wall Street is expecting.

For those unfamiliar with the financial markets, the important thing to know is that comparisons to expectations, instead of year-on-year or quarter-on-quarter growth, are the most important for financial results.

Earnings reports that exceed expectations usually send a company's stock price higher, while the opposite can cause it to fall.

In the latest Bloomberg survey, Wall Street analysts' median estimate for Nio's revenue in the second quarter was RMB 17.385 billion yuan ($2.45 billion).

The electric vehicle (EV) maker had previously guided for second-quarter revenue of between RMB 16.59 billion and RMB 17.14 billion, representing growth of about 89.1 percent to 95.3 percent from the same period in 2023.

Wall Street's expectations for Nio's second-quarter revenue exceeded the upper end of its guidance range, as the company's deliveries in the quarter unexpectedly beat guidance.

Nio delivered a record 57,373 vehicles in the second quarter, exceeding the upper end of the guidance range of between 54,000 and 56,000 vehicles it provided when it reported first-quarter earnings on June 6. That's a 143.93 percent increase year-on-year and a 90.91 percent increase from the first quarter.

The company reported revenue of RMB 9.91 billion in the first quarter, missing analysts' expectations of RMB 10.75 billion at the time, mainly due to a decline in deliveries during the traditionally slow season and price wars.

Nio remained in the red, with Wall Street expecting the company to report a net loss attributable to ordinary shareholders of RMB 5.057 billion in the second quarter. Analysts were expecting Nio to report an adjusted net loss of RMB 4.9 billion.

In the first quarter, the company reported a net loss attributable to ordinary shareholders of RMB 5.258 billion, or RMB 4.897 billion on an adjusted basis.

Wall Street expects Nio to post a gross margin of 8.736 percent in the second quarter, up from 4.922 percent in the first quarter.

Nio's operating loss for the second quarter is expected to be RMB 4.861 billion. In the first quarter, Nio reported an operating loss of RMB 5.394 billion, an increase of 5.5 percent from the first quarter of 2023 and a decrease of 18.6 percent from the fourth quarter of 2023.

Wall Street expects Nio's net loss per ordinary share to be RMB 2.613 in the second quarter, or RMB 2.17 on an adjusted basis. In the first quarter those figures were RMB 2.57 and RMB 2.39, respectively.

($1 = RMB 7.1036)

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