Electric scooter maker Niu Technologies (NIU) reported disappointing third-quarter earnings early Monday. Niu stock, which had been soaring, fell sharply Monday.
XNiu Earnings
Estimates: One analyst on Wall Street expected Niu earnings per share to grow 39% to 18 cents a share as revenue jumped 52% to $139.37 million, according to Zacks Investment Research. Some other estimates had Niu earnings at 16 cents.
Results: Niu earnings came in 17 cents a share with revenue of $131.74 million.
Niu expects Q4 revenue to rise 5%-15% vs. a year earlier in local currency terms.
In October, Niu disclosed Q3 e-scooter volumes surged 68% to 250,889. That followed a 61% Q2 gain after a pandemic-scarred first quarter, which saw e-scooter sales plunge 39%. Niu's "scooters" are really sit-down mopeds, as opposed to small, stand-up scooters from the likes of Bird.
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Niu Stock
Shares tumbled 9.1% to 32.48 in Monday stock market trading. Niu stock cleared a 25.98 second-stage, flat-base buy point Oct. 9, according to MarketSmith chart analysis. Shares are now extended beyond buy range. The relative strength line has bolted higher since September to all-time highs, indicating outperformance vs. the S&P 500.
While the hype around electric-power micromobility startups has subsided since 2018, when Ford (F) bought e-scooter startup Spin and General Motors (GM) pledged to build e-bikes, Niu stock has more than tripled since May.
Niu also has expanded into Europe as well as emerging markets where scooters are big, such as India. The company, known for its "cool" and "smart" e-scooters, benefited from the launch of new, more affordable models, such as the Go.
But Niu warned that the Go model has a lower sales price and gross margin vs. existing models.
Fast-growing Niu has sold more than 1 million smart, electric two-wheelers worldwide. It has also expanded into 38 countries across Asia, Europe and Latin America. Founded in 2014 by a former Baidu (BIDU) executive, it also offers a scooter-sharing platform.
The Niu earnings report comes after Chinese electric-car stocks Nio (NIO), Li Auto (LI) and Xpeng Motors (XPEV) reported strong growth in recent weeks and gave bullish outlooks.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
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