ChargePoint powers upEV charging network ChargePoint reports a powerful fourth quarter with a fully charged outlook to boot.
- Prices rallied over 7% in extended trading on Wednesday after the infrastructure company beat on both ends with EPS of $0.17 on sales of $80.7m – at this point in ChargePoint’s young history, sales is the metric that really matters…
- So it’s a good thing sales are set to soar. For the upcoming fiscal year, the business is forecasting sales of up to $500m, smashing estimates for $418m and implying growth of around 95% y-o-y. It now has 174k EV charging ports active and has seen revenue grow by 64% in its first year as a public company.
- This is the sixth consecutive quarter ChargePoint has exceeded estimates. While conflict in Eastern Europe and rate hikes have sapped investors' enthusiasm for growth stocks, ChargePoint has managed to successfully navigate the volatility and kept prices fairly steady through February.
Li Zhang / Unsplash
Subscribe to Snaps
See the market snapshots that matter and nothing else – sent to your inbox daily. Designed to be read in 20 seconds or less.
ChargePoint’s power surgeEV infrastructure firm ChargePoint sees its prices get a few extra bars of power from a bullish JP Morgan.
- The stock surged 10.5% on Friday, a much needed boost after prices hit an all time low on Thursday – though it’s still down over 60% since it hit the market in March 2021.
- JP Morgan upgraded the stock to overweight, arguing that ChargePoint is a “clear leader” in the North American commercial charging market and saying its recent dramatic pullback provides a great opportunity to get involved.
- Investors could still see another 20% to 30% downside before turning things around, but JP Morgan feels confident that it's on the path to profitability as more and more people switch to electric vehicles.
Sebastian Pociecha / Unsplash
Investors are running out of batteryPrices are in need of a jolt after EV charging company ChargePoint releases paltry earnings.
- Shares opened down 5% before recovering to end the day down over 3%, having now lost 18% this month so far.
- Q3 was the opposite of supercharged. EPS of $0.14 came in one cent wider than expected, and though revenue of $65m was up nearly 80% y-o-y, it only just beat estimates.
- It raised its revenue outlook for the second time this year, expecting revenue of up to $78m compared to the $72m analysts looked for.
- Investors are worried about the bottom line, concerned about reaching profitability in the face of increased competition.
- But it’s still early in the game. ChargePoint is still pretty new on the market, becoming the first publicly traded global EV charging network after completing its SPAC in March.
- The threat of regulation is looming. The SEC thinks SPACs need tighter regulation and have been investigating recent SPACs after their financial projections came under scrutiny.
Robert Linder / Unsplash