ChargePoint sales soar as infrastructure bill advances

ChargePoint (CHPT) reported mixed second-quarter results late Wednesday as demand for EV charging accelerates amid planned infrastructure spending. CHPT stock rose overnight.




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The Campbell, California-based company designs, tests and markets EV charging infrastructure for residential, commercial and fleet use with the largest market share in the US and a growing presence in Europe.

ChargePoint, founded in 2007, has approximately 118,000 active public and private charging ports. They include 5,400 ports in Europe and about 3,700 DC fast chargers. The company went public on March 1 through a special purpose acquisition company.

DA Davidson analyst Matt Summerville said in a July 28 report that ChargePoint expects to grow its charging footprint to about 1.2 million to 1.3 million ports over the next six years across North America and Europe.

ChargePoint will benefit from the Biden administration’s plan to spend $75 billion of its roughly $1 trillion infrastructure bill on technology, including charging stations.

ChargePoint Earnings

estimates: Analysts polled by FactSet expected ChargePoint to cap losses to 13 cents a share. They saw revenue rise 40% from the same quarter last year to $49.1 million.

Results: ChargePoint reported a 29 second quarter loss, missing views. Revenue came in at $56.1 million, up 61% from $35 million in the year-ago quarter and exceeding expectations.

At July 31, 2021, there was $618.5 million in cash on the balance sheet. During the quarter, approximately 4.4 million warrants were exercised for $44.3 million in cash.

Outlook: The company said in a statement it expects revenue of $60 million to $65 million for the third quarter ended October 31, 2021, above FactSet views at $54.7 million. ChargePoint raises its full-year revenue outlook to $225 million to $235 million, from $195 million to $205 million, for the fiscal year ended January 31, 2022.

ChargePoint Inventory

CHPT stock shot up 10% in late trading.

Shares closed 0.4% to 21.23 on the exchange today. CHPT shares have lost more than half of its value since hitting a 52-week high of 49.48 on Dec. 24, 2020, according to MarketSmith chart analysis.

The stock is trading below the 50- and 200-day lines. The relative strength line is trending downward. ChargePoint’s RS rating is 39 out of 99, while its EPS rating is 17.

rivals Blink Charging (BLNK) rose 1.6%, while EVgo (EVGO) decreased by 3.2%. Tesla (TSLA), which recently said it would open its charging network to others in 2021, fell 0.2% to 734.09. TSLA shares hold above an aggressive buy point of 730.

During the quarter, ChargePoint partnered with Mercedes to launch Mercedes me Charge, a charging ecosystem that simplifies the process of finding, using and paying for charging sessions on all major networks in North America.

In July, the company signed an agreement to acquire has•to•be, an e-mobility provider with a leading European charging software platform.

But ChargePoint is still in the early stages of development, and both operating costs and research and development expenditures are increasing.

Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.

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