Yahoo Finance Things to Note Ahead of ChargePoint's (CHPT) Q4 Earnings
ChargePoint Holdings CHPT is slated to release fourth-quarter fiscal 2023 results (ended Jan 31, 2023) on Mar 2, after the closing bell. The Zacks Consensus Estimate for the quarter’s loss and revenues is pegged at 15 cents per share and $164.2 million, respectively.
The Zacks Consensus Estimate for ChargePoint’s fiscal fourth-quarter loss per share has widened by 1 cent in the past 90 days. The bottom-line projection indicates a 28.6% improvement from the year-ago quarter levels. The revenue estimates imply a jump of 103.5% from the year-ago period levels.
In the last reported quarter, this electric vehicle (EV) charging company incurred a loss of 17 cents a share, narrower than the consensus mark of 19 cents. Over the trailing four quarters, the company topped estimates twice for as many misses, with the average negative surprise being 8.10%.
ChargePoint Holdings, Inc. Price and EPS Surprise
ChargePoint Holdings, Inc. price-eps-surprise | ChargePoint Holdings, Inc. Quote
Key Partnerships Inked During Q4
During the fiscal fourth quarter, ChargePoint inked an agreement with Lexus to provide RZ 450e drivers access to the ChargePoint Home Flex Level 2 charger. It also joined forces with Stem to rev up the deployment of EV charging and battery storage solutions for DC fast charging. ChargePoint also teamed up with MN8 Energy and Mercedes-Benz to step up the availability of DC fast charging in North America. The companies look to develop more than 400 charging hubs in the United States and Canada.
Factors at Play
ChargePoint’s fiscal fourth-quarter top line is anticipated to have benefited from the growing demand for its cloud subscription platform and software-defined charging hardware, which are designed to include options for every charging scenario (home, workplace, parking, hospitality, retail, transport fleets, and more). The company expects fiscal fourth-quarter revenues in the band of $160-$170 million, indicating a year-over-year increase of 108% from the midpoint of the guided range and well within the consensus mark.
The launch of the CP6000, ChargePoint’s AC EV charging solution, is set to boost upcoming results. Strategic buyouts are also expected to aid fiscal fourth-quarter revenues. For instance, the acquisition of has·to·be has accelerated CHPT’s position in Europe's charging ecosystem. Also, the acquisition of ViriCiti has fortified CHPT’s leadership position in the EV charging market.
On a discouraging note, ChargePoint has been bearing the brunt of rising operating costs as it is still in the early stages of development. Elevated research and development expenses are expected to have dented its fiscal fourth-quarter margins. In the last reported quarter, operating costs escalated to $105.9 million from $81.4 million incurred in the comparable year-ago period. Elevated spending levels, especially when the revenue base is low, are likely to have limited margins.
What Does Our Model Say?
Our proven Zacks model does not conclusively predict an earnings beat for ChargePoint this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here, as elaborated below.
Earnings ESP: ChargePoint has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is on par with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: ChargePoint — whose close peer is Blink Charging BLNK — currently holds a Zacks Rank of 3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings of BLNK
Blink Charging released its fourth-quarter 2022 results yesterday. The EV charging firm incurred a quarterly loss of 51 cents per share, wider than the Zacks Consensus Estimate of a loss of 49 cents as well as the year-ago quarter’s loss of 45 cents per share. Total revenues of $22.6 million surpassed the Zacks Consensus Estimate of $19 million. The top line also skyrocketed 184% on a year-over-year basis.
Product sales, which constitute 70% of BLNK’s total revenues, soared 176% from the comparable year-ago quarter. Service revenues jumped 213% year over year. As of Dec 31, Blink Charging had cash and cash equivalents of $36.5 million.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Blink Charging Co. (BLNK) : Free Stock Analysis Report
ChargePoint Holdings, Inc. (CHPT) : Free Stock Analysis Report
