ChargePoint (CHPT) posted a wider-than-expected loss for the third quarter late Thursday and narrowed revenue guidance, with the quickening global adoption of electric vehicles set to boost charging demand. CHPT stock fell late Thursday, after a jump on Wednesday.
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In the U.S., passage in August of the Inflation Reduction Act gave EV stocks in general a lift, including battery makers and charging station providers, like ChargePoint. The legislation provides, among its many transportation and energy measures, incentives for building out a nationwide EV charging network.
Electric vehicles, or EVs, generally cost more upfront than combustion-engine vehicles. But EVs tend to cost less to own and operate in the long run, because electricity is usually cheaper than gasoline.
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ChargePoint Earnings
Estimates: Analysts expected ChargePoint to widen losses to 19 cents per share from 14 cents a year ago, according to Zacks Investment Research. Revenue was seen soaring 102% to $131.35 million. Sales growth was seen picking up from a 93% gain in Q2, which had marked ChargePoint’s first $100 million quarter.
Results: ChargePoint lost 25 cents per share. Revenue jumped 93% to $125 million.
Outlook: For the full fiscal year, ChargePoint now expects revenue of $475 million to $485 million, with the midpoint representing an increase of $5 million vs. prior guidance. Analysts were expecting full-year revenue of $485.16 million, up 100.2% vs. fiscal year 2022.
CHPT Stock
Shares of the EV charging stock fell 2.6% on the stock market today. They lost 1.8% in late trade. On Wednesday, CHPT stock leapt 7.7% to 12.42, but still well below its 50-day and 200-day moving averages.
Besides ChargePoint, providers of EV charging stations include EVgo (EVGO) and Blink Charging (BLNK). ChargePoint is nearly four times larger than its nearest peer, EVgo, measured by market capitalization.
But with more than 40,000 Supercharger charging stations, Tesla (TSLA) claims to own and run the largest fast-charging network in the world.
Blink and EVgo shares rallied 6.9% and 5.3%, respectively, on Wednesday. Tesla stock jumped 7.7%. Both Blink and EVgo fell Thursday while Tesla edged up a fraction.
Growth stocks lead Wednesday’s broad market rally. The stock market rallied after Fed Chair Jerome Powell signaled smaller interest rate hikes ahead.
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EV Charging Infrastructure
Founded in 2007, ChargePoint operates in the U.S., Europe and India, managing 200,000 charging ports. Its target markets span homes, businesses and commercial vehicle fleets.
ChargePoint and its peers expect to benefit from growing demand for charging systems. EV sales continue to rise, led by China and Europe.
The Inflation Reduction Act aims to spur growth in the U.S., also a top market.
But on Tuesday, Citi analyst Itay Michaeli cut his price target on CHPT stock to $14 from $15.50.
The setup for this EV charging stock “appears fairly balanced,” Michaeli said in his note to investors. The analyst maintained a neutral rating on ChargePoint shares.
Companies partnering with ChargePoint on EV charging include Volkswagen (VWAGY). More recently, ChargePoint teamed up with Nikola (NKLA), the EV startup focused on electric semi trucks.
In March, ChargePoint, Sweden’s Volvo and Starbucks (SBUX) partnered on a fast-charging network, stretching from Seattle to Colorado.
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