rises after its electric vehicle charging company’s second-quarter revenue surpassed analyst expectations.
ChargePoint (ticker: CHPT) stock rose about 12% in after-hours trading. Shares rose 0.4% on Wednesday, as the
was flat and the
Dow Jones Industrial Average
Company reported a loss of 29 cents a share of $56.1 million in sales. Wall Street was looking to lose 13 cents on $49 million in revenue.
At this point in the company’s history, revenue is not as important as revenue. ChargePoint is new and growing. Costs were also impacted by rising share-based fees of approximately $28 million. The number added up less than $8 million in the first quarter of the year.
Not only did second quarter revenue exceed expectations, management forecast $60 million to $65 million for the third quarter. Analysts’ financial models assume $55 million. For the full year, ChargePoint expects revenue of approximately $230 million, up from previous expectations of approximately $200 million. Wall Street is forecasting $208 million in revenue in 2021.
All in all, it looks like a good quarter.
“ChargePoint’s strong second quarter results demonstrate our continued growth and leadership in the electric revolution,” CEO Pasquale Romano said in the company’s press release. “We achieved record sales, grew significantly in our commercial, fleet and residential businesses, launched a charging integration with Mercedes, announced our agreement to acquire e-mobility technology provider has to be, and acquired eBus and commercial vehicle management provider ViriCiti.”
The news comes as a relief to investors. The stock is down about 18% in the past three months, falling with other EV-related small-cap stocks. Shares of
(LCID), for example, have fallen about 38% and 18% over the same period.
Gloomy predictions from
(GM) on second half earnings was a headwind. The shortage of semiconductors hampering global auto production remains a problem.
But fundamentals for EV charging stocks have been slightly better. President Joe Biden’s recently approved $1 trillion infrastructure bill is a benefit, even as the amounts to be spent on charging infrastructure fluctuate in different versions of the bill. That money is allocated years later.
It’s still early days for EV stocks and EV charging, so it’s difficult to estimate the impact of new spending on the industry. There are only a few million electric vehicles on American roads, a fraction of the more than 200 million light vehicles on the road. Current results are less important to ChargePoint than growth prospects.
Wall Street is optimistic about the long term. Eight out of 10 analysts who buy stock prices are buying. The average Buy rating ratio for small capitalization stocks is about 60%. Analysts’ average price target is about $35 per share, representing an increase of about 65% from recent levels.
Management has scheduled an earnings conference at 4:30 p.m. Eastern Time to discuss the results.
Write to Al Root at email@example.com