ChargePoint (CHPT) prepares to report earnings for the third quarter late Thursday, with the quickening global adoption of electric vehicles (EVs) giving charging companies a boost. CHPT stock popped Tuesday.
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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. The legislation provides, among its many transportation and energy measures, various incentives for public and private companies to build out a nationwide EV charging infrastructure.
A major advantage of battery-operated vehicles over traditional gasoline-powered vehicles is that, in the long run, they cost less to operate and maintain. Electricity is usually much cheaper than gasoline.
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ChargePoint Earnings
Estimates: Analysts expect ChargePoint to widen losses to 19 cents per share from 14 cents a year ago, according to Zacks Investment Research. Revenue is seen soaring 102% to $131.35 million. Sales growth is seen accelerating from a 93% gain in Q2, which had marked ChargePoint’s first $100 million quarter.
Results: Check back Thursday after the market close.
Outlook: For the full fiscal year, analysts expect ChargePoint revenue of $485.16 million, above the midpoint of the company’s guidance, and up 100.2% vs. fiscal year 2022.
CHPT Stock
Shares of ChargePoint leapt 5.7% to 12.19 on the stock market today, leaving the stock still far below its 50-day and 200-day moving averages. CHPT stock has more than halved in the past year.
Besides ChargePoint, EV charging networks include EVgo (EVGO), Blink Charging (BLNK) and Volta (VLTA). 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 between 2% and 3% Wednesday. Volta narrowed an early 4% loss to less than 1%. Tesla stock jumped 3.5%. Reports earlier this week said Tesla has reduced Supercharging prices in many regions as its EV charging business starts to mature.
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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