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High Cost to Offset ChargePoint (CHPT) Sales This Earnings Season
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ChargePoint Holdings (CHPT - Free Report) is slated to release fourth-quarter fiscal 2022 results (ended Jan 31, 2022) 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 $75.8 billion, respectively.
The Zacks Consensus Estimate for ChargePoint’s fiscal fourth-quarter loss per share has moved south by 2 cents in the past 90 days.
This EV charging company went public on Mar 1, 2021 through a reverse merger with Switchback Energy Acquisition Corporation. In the last reported quarter, CHPT incurred a loss of 14 cents a share, in line with the consensus mark. Over the trailing three quarters, the company missed estimates twice and matched once, with the average negative surprise being 23.6%.
ChargePoint’s fiscal third-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 $73-$78 million, indicating an increase from the prior quarter’s figure of $65 million.
The firm’s upcoming results will reflect benefits from the strategic buyouts completed in third-quarter fiscal 2022. The top line is likely to have got a boost from the acquisition of has·to·be — an e-mobility provider with a leading European charging software platform. This acquisition accelerated CHPT’s position in Europe's charging ecosystem, thereby contributing to fourth-quarter fiscal 2022 revenues. Also, the acquisition of ViriCiti, a leading provider of electrification solutions for eBus and commercial fleets with a customer base in Europe and North America, fortified CHPT’s leadership position in the EV charging market and is likely to have aided the company’s performance in the to-be-reported quarter.
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 $81.4 million from $39.8 million incurred in the comparable year-ago period. Such elevated spending levels, especially when the revenue base is low, arrre likely to have adversely impacted the bottom line.
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 for loss 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.
Blink Charging (BLNK - Free Report) is set to release fourth-quarter 2021 results on Feb 28. Our model does not conclusively predict an earnings beat for BLNK as it doesn’t have the right combination of a favorable Rank and positive ESP. The company carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.
The Zacks Consensus Estimate for Blink Charging’s fourth-quarter revenues and loss is pegged at $5.99 million and 39 cents per share, respectively. Over the trailing four quarters, BLNK missed earnings estimates thrice and met on one occasion, with the average negative surprise being 61.5%.
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High Cost to Offset ChargePoint (CHPT) Sales This Earnings Season
ChargePoint Holdings (CHPT - Free Report) is slated to release fourth-quarter fiscal 2022 results (ended Jan 31, 2022) 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 $75.8 billion, respectively.
The Zacks Consensus Estimate for ChargePoint’s fiscal fourth-quarter loss per share has moved south by 2 cents in the past 90 days.
This EV charging company went public on Mar 1, 2021 through a reverse merger with Switchback Energy Acquisition Corporation. In the last reported quarter, CHPT incurred a loss of 14 cents a share, in line with the consensus mark. Over the trailing three quarters, the company missed estimates twice and matched once, with the average negative surprise being 23.6%.
ChargePoint Holdings, Inc. Price and EPS Surprise
ChargePoint Holdings, Inc. price-eps-surprise | ChargePoint Holdings, Inc. Quote
What to Expect This Time Around
ChargePoint’s fiscal third-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 $73-$78 million, indicating an increase from the prior quarter’s figure of $65 million.
The firm’s upcoming results will reflect benefits from the strategic buyouts completed in third-quarter fiscal 2022. The top line is likely to have got a boost from the acquisition of has·to·be — an e-mobility provider with a leading European charging software platform. This acquisition accelerated CHPT’s position in Europe's charging ecosystem, thereby contributing to fourth-quarter fiscal 2022 revenues. Also, the acquisition of ViriCiti, a leading provider of electrification solutions for eBus and commercial fleets with a customer base in Europe and North America, fortified CHPT’s leadership position in the EV charging market and is likely to have aided the company’s performance in the to-be-reported quarter.
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 $81.4 million from $39.8 million incurred in the comparable year-ago period. Such elevated spending levels, especially when the revenue base is low, arrre likely to have adversely impacted the bottom line.
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 for loss 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 - Free Report) — currently holds a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings Whispers for BLNK
Blink Charging (BLNK - Free Report) is set to release fourth-quarter 2021 results on Feb 28. Our model does not conclusively predict an earnings beat for BLNK as it doesn’t have the right combination of a favorable Rank and positive ESP. The company carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.
The Zacks Consensus Estimate for Blink Charging’s fourth-quarter revenues and loss is pegged at $5.99 million and 39 cents per share, respectively. Over the trailing four quarters, BLNK missed earnings estimates thrice and met on one occasion, with the average negative surprise being 61.5%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.