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ChargePoint Sales Surge As Infrastructure Bill Moves Ahead

ChargePoint (CHPT) report mixed second-quarter earnings late Wednesday, as demand for EV charging accelerates amid planned infrastructure spending. CHPT stock rose overnight.




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The Campbell, Calif.-based company designs, tests and markets EV charging infrastructure for residential, commercial and fleet use with the largest market share in the U.S. and an expanding footprint in Europe. 

Founded in 2007, ChargePoint has approximately 118,000 active public and private charging ports. They include 5,400 ports in Europe and about 3,700 DC fast chargers. The company went public on March 1 via a special purpose acquisition company.

D.A. Davidson analyst Matt Summerville said in a July 28 report that ChargePoint expects to grow its charging footprint to approximately 1.2 million to 1.3 million ports over the next six-year period, spanning across North America and Europe.

ChargePoint stands to benefit from the Biden administration’s plan to spend $75 billion of the roughly $1 trillion infrastructure bill on technology, including charging stations. 

ChargePoint Earnings

Estimates: Analysts polled by FactSet expected ChargePoint to narrow losses to 13 cents a share. They saw sales rising 40% from the same quarter last year to $49.1 million.

Results: ChargePoint reported a Q2 loss of 29, missing views. Sales came in at $56.1 million, an increase of 61% from $35 million in the prior year’s same quarter and beating expectations.

As of July 31, 2021, cash on the balance sheet was $618.5 million. During the quarter approximately 4.4 million warrants were exercised for $44.3 million in cash.

Outlook: The company said in a statement it expects revenue of $60 million to $65 million for its third quarter ending Oct. 31, 2021, above FactSet views for $54.7 million. ChargePoint is raising its full-year revenue outlook to $225million to $235 million, from $195 million to $205 million, for the fiscal year ending Jan. 31, 2022.

ChargePoint Stock

CHPT stock popped 10% in late trade.

Shares closed up 0.4% to 21.23 on the stock market today. CHPT stock has lost more than half its value since notching a 52-week high of 49.48 in on Dec. 24, 2020, according to MarketSmith chart analysis.

The stock is trading below its 50-day and 200-day line. Its relative strength line is trending downward. ChargePoint’s RS Rating is 39 out of 99, while its EPS Rating is 17.

Rivals Blink Charging (BLNK) rose 1.6%, while EVgo (EVGO) was down 3.2%. Tesla (TSLA), which recently said it would open its charging network to others in 2021, dipped 0.2% to 734.09. TSLA stock is holding above a 730 aggressive buy point.

During the quarter, ChargePoint partnered with Mercedes to launch Mercedes me Charge, a charging ecosystem that simplifies the process of finding, using and paying for charging sessions on all major networks in North America.

In July, the company signed an agreement to acquire has•to•be, an e-mobility provider with a leading European charging software platform.

But ChargePoint is still in the early stages of development, and operating costs as well as research and development expenditures are rising.

Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.

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