ChargePoint (CHPT) gave weak earnings guidance for the current quarter on Thursday after beating earnings estimates for the fiscal first quarter. CHPT shares attempted a gain on Friday after breaking through a key level on Tuesday.
The ChargePoint earnings report follows an EV charge pact between tesla (TSLA) and ford (F) at the end of May.
ChargePoint is a leading provider of electric vehicle charging networks in the US and Europe. Globally, countries are switching to electric vehicles from gasoline and diesel powered cars.
estimates: For the first quarter, which ended April 30, analysts had expected ChargePoint to cut losses to 19 cents a share from 21 cents a year ago, according to FactSet consensus estimates.
Revenue jumped 57% year-over-year to $128.3 million.
Results: ChargePoint cut losses to 15 cents a share, FactSet shows. Revenue jumped 59% year-over-year to $130 million. But this marked the fourth straight quarter of slowing sales growth.
Gross margins increased during the first quarter, the company said. On-balance sheet cash stood at $313.7 million at the end of April, down from $399.5 million at the end of January.
Costs of providing network billing systems and subscription services increased 43% during the quarter. Interest expenses also increased, the earnings release showed.
Panorama: ChargePoint guided second-quarter revenue of $148 million to $158 million. The $153 million midpoint was well below the FactSet consensus estimates of $165.6 million before earnings. Analysts are now expecting $160.3 million.
For the full year, analysts are forecasting a net loss of 63 cents a share, FactSet shows. That would mark an improvement from a loss of 68 cents a share in fiscal 2023, which ended Jan. 31. Analysts project first annual profit of seven cents in fiscal 2026.
ChargePoint shares rose 0.4% to 9.79 in choppy stock market trading today. CHPT shares surged 14% on Tuesday, rebounding off the 50-day moving average for the first time since early March.
On Tuesday, ChargePoint got an update as the “best-in-class way” to use EV charging space. “The reason for our upgrade is simple – CHPT has proof of execution (and) line of sight to profitability,” Bank of America analyst Alex Vrabel wrote in a note to clients Tuesday.
CHPT shares are working at a cup-shaped buy point of 13.75, MarketSmith chart shows. But the stock has no prior uptrend and is trading below the 200-day line.
On May 19, ChargePoint shares hit a record low of 7.82.
Among other EV charging actions, EVgo (EVGO) rose 3.2% to 4.14 on Friday. load flashing (BLNK) rose 0.3% to 6.77.
All EV charging stocks have fallen over the past year, with their 10-week moving averages stuck below the 40-week lines. Investors soured on ChargePoint and its peers as rising interest rates raised costs for building public charging networks.
dutch oil company Shell (SHEL), which completed its purchase of Volta for $169 million on March 31, gained 1.8% on Friday.
On May 26th, tesla (TSLA) and ford (F) announced an EV charging partnership, in which Ford will use Tesla’s Superchargers and adopt its standard of charging.
F shares advanced 0.7% on Friday, returning above the 50-day line. Shares of TSLA were up 2.3%, rising for a sixth straight session. TSLA shares topped a buy point again. Shares in the EV giant are back above the 40-week line for the first time since September. Tesla CEO Elon Musk visited China this week.
EV charging network established
Founded in 2007, ChargePoint operates electric vehicle (EV) charging stations in the US and several other countries.
“We emphasize CHPT’s scale and diversity as key to our belief in sustainable growth. Anchor positions in the EV charging markets in the US and Europe offer an elegant but unfocused way to play electrification trends,” they said. Bank of America analysts in Tuesday’s note.
The analyst advised investors to look beyond headlines about competition. Tesla already sells adapters that allow its electric vehicles to be connected to fast-charging stations run by third-party companies, he said. These companies include ChargePoint, Volta and Electrify America.
In fact, he expects ChargePoint to benefit “from overflowing TSLA’s already congested Supercharger network.”
Vrabel upgraded CHPT shares to buy from neutral, but cut his price target to $14 from $15.50.
Year-to-date, ChargePoint shares were up 2.7%. It is up more than 25% from the May 19th low of 7.82.
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