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What's in the Offing for EVgo (EVGO) This Earnings Season?

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EVgo Inc. (EVGO - Free Report) is slated to release first-quarter 2022 results on May 11, before the opening bell. The company went public on Jul 2, 2021, following the completion of a merger with blank-check firm Climate Change Crisis Real Impact I Acquisition Corp. The Zacks Consensus Estimate for its bottom and top lines is pegged at a loss of 10 cents per share and $8.57 million, respectively, for the to-be-reported quarter. The Zacks Consensus Estimate for EVgo’s first-quarter loss per share has widened by 3 cents in the past 60 days. Over the trailing two quarters, EVGO surpassed earnings estimate on one occasion and missed on the other, the average negative surprise being 163.4%.

Highlights of Q4

EVgo reported fourth-quarter 2021 revenues of $7.1 million compared with $4.2 million in the comparable year-ago period. The company incurred a net loss of $46.3 million amid a high cost of sales and operating expenses. Network throughput jumped 95% year over year to 8.2 Gigawatt hours (GWh) for the quarter under discussion. Capex totaled $25.3 million for the fourth quarter of 2021.

Earnings Whispers

Our proven Zacks model does not conclusively predict an earnings beat for EVGO 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: EVgo has an Earnings ESP of -3.45%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Evgo currently holds a Zacks Rank of 4 (Sell). You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors at Play

The electric vehicle (EV) charging company is likely to reap benefits of increased adoption of green cars. Continued growth in network throughput and customer accounts is expected to benefit first-quarter results. The addition of new charger stalls is also expected to have aided revenues.

On the flip side, EVgo is facing a high cost of sales as it is still in the early stage of development. Cost of sales have been rising with each passing quarter and the trend is expected to continue. Elevated SG&A expenses and capex for the development of additional charging stalls are also expected to have dented its first-quarter margins. On its last earnings call, EVGO forecast 2022 loss before interest, taxes, depreciation and amortization in the band of $75-$85 million, implying a deterioration from a loss of $51.4 million in 2021. This raises concern for the upcoming results. Also, intense competition from other charging networks is likely to have eaten into some revenues of the firm, thereby impacting first-quarter performance.

What’s in Store for BLNK?

EVgo’s close peer Blink Charging (BLNK - Free Report) is scheduled to release first-quarter 2022 results on May 9. The Zacks Consensus Estimate for the top line is currently pegged at $6.42 million, indicating a whopping growth of 187.76% from the year-ago quarter. The consensus mark for loss has been unchanged at 40 cents per share but is wider than 18 cents reported in the prior-year quarter.BLNK earnings missed the Zacks Consensus Estimate in three of the trailing four quarters and matched once, the average negative surprise being 35.79%.

Our proven model doesn’t conclusively predict an earnings beat for Blink Charging this time around as it doesn’t have the right combination of a favorable Zacks Rank and a positive ESP.  BLNK has a Zacks Rank #4 and an Earnings ESP of 0.00%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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