Niu Applied sciences (NASDAQ:NIU) reported third-quarter earnings at the moment, and it did not cost up the market’s pleasure. To the chagrin of traders, the electrical scooter producer failed to fulfill analysts’ top- and bottom-line expectations.
As of 12:51 p.m. ET on Monday, shares of Niu have been down 16%.
Niu Applied sciences reported gross sales of 1.2 billion yuan ($187.7 million) for the third quarter, a 37.1% year-over-year enhance. However traders had increased hopes for the corporate, and have been disillusioned that it did not meet analysts’ estimate of 1.4 billion yuan. The earnings have been a sore spot on the revenue assertion as effectively. Analysts anticipated earnings per share (EPS) of 1.18 yuan, however the firm reported EPS of solely 0.57 yuan.
Whereas worldwide gross sales had been a driving drive behind the corporate’s development over the summer time, international markets did not ship a comparable efficiency final quarter. In reality, Niu largely attributed the contraction in its gross margin from 20.9% within the year-ago quarter to twenty% within the lately accomplished quarter to weaker worldwide gross sales. It reported that the variety of e-scooters bought in worldwide markets was 11.2% decrease than a 12 months in the past.
Niu Applied sciences failed to fulfill expectations final quarter, however administration appears hopeful in regards to the future. Within the press launch accompanying the earnings report, CEO Yan Li stated, “The widened product portfolio and channel protection additionally laid a robust basis for our development in This autumn and 2022.” Buyers, nevertheless, ought to be circumspect about this development inventory and wait to see how the corporate does within the coming quarters.
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