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Key Factors Influencing EVGO's Fate This Earnings Season
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EVgo Inc. (EVGO - Free Report) is slated to release fourth-quarter 2021 results on Mar 23, 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 6 cents per share and $5.90 million, respectively, for the to-be-reported quarter. In the last reported quarter, EVgo incurred a loss of 49 cents a share, way wider than the Zacks Consensus Estimate of a loss of 8 cents. The Zacks Consensus Estimate for EVgo’s fourth-quarter loss per share has narrowed by a cent in the past seven days.
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 0.00%. This is because the Most Accurate Estimate matches the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The electric vehicle (EV) charging company is likely to reap benefits from the increased adoption of green cars. Continued growth in network throughput and customer accounts is expected to benefit fourth-quarter results. The addition of new charger stalls is also expected to have aided revenues.
Both the fleet and retail segments are anticipated to have realized solid revenue growth in the quarter to be reported. EVgo’s solid position on fleet electrification demonstrated by partnerships with General Motors (GM - Free Report) , Merchants Fleet and Electric Last Mile Solutions, among others, bodes well for fourth-quarter results.
During the quarter to be reported, EVgo and General Motors expanded their fast-charging infrastructure build-out collaboration across the United States. Under the latest agreement, EVGO and GM will deploy another 500 high-powered DC fast charging stalls, bringing the total to 3,250 stations across the country through 2025.
In the last earnings call, EVGO raised its full-year 2021 view, instilling confidence in fourth-quarter results. The firm expects total 2021 revenues in the band of $20-22 million, up from the prior guidance of $20 million. Network throughput is envisioned in the band of 24-26 GWh, up from the previous guidance of 24 GWh.
On the flip side, EVgo is facing a high cost of sales as it is still in the early stage of development. Elevated general and administrative (G&A) expenses are also expected to have dented its fourth-quarter margins. Cost of sales and G&A expenses witnessed a year-over-year uptick of 38.8% in the last reported quarter. G&A costs in third-quarter 2021 skyrocketed 161% to $20.8 million. Rising operating expenses and cost of sales are likely to have continued in the fourth quarter as well. Also, intense competition from other charging networks is likely to have eaten into some revenues of the firm, thereby impacting fourth-quarter performance.
Snapshot of CHPT Quarterly Results
EVgo’s close peer ChargePoint Holdings (CHPT - Free Report) released fiscal fourth-quarter 2022 results on Mar 2. The company incurred an adjusted loss of 21 cents a share, wider than the Zacks Consensus Estimate of a loss of 16 cents. The bottom line also deteriorated close to 50% from third-quarter 2021. Revenues came in at $80.6 million, surpassing the consensus mark of $76 million and increasing from $65 million registered in third-quarter 2021.
ChargePoint’s total operating expenses for the quarter under discussion summed $97.6 million. As of Jan 31, CHPT’s cash and cash equivalents totaled $315.2 million. CHPT envisions fiscal 2023 revenues in the band of $450-$500 million. The stock currently carries a Zacks Rank #4 (Sell).
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Key Factors Influencing EVGO's Fate This Earnings Season
EVgo Inc. (EVGO - Free Report) is slated to release fourth-quarter 2021 results on Mar 23, 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 6 cents per share and $5.90 million, respectively, for the to-be-reported quarter. In the last reported quarter, EVgo incurred a loss of 49 cents a share, way wider than the Zacks Consensus Estimate of a loss of 8 cents. The Zacks Consensus Estimate for EVgo’s fourth-quarter loss per share has narrowed by a cent in the past seven days.
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 0.00%. This is because the Most Accurate Estimate matches 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: Evgo currently holds a Zacks Rank of 3. 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 from the increased adoption of green cars. Continued growth in network throughput and customer accounts is expected to benefit fourth-quarter results. The addition of new charger stalls is also expected to have aided revenues.
Both the fleet and retail segments are anticipated to have realized solid revenue growth in the quarter to be reported. EVgo’s solid position on fleet electrification demonstrated by partnerships with General Motors (GM - Free Report) , Merchants Fleet and Electric Last Mile Solutions, among others, bodes well for fourth-quarter results.
During the quarter to be reported, EVgo and General Motors expanded their fast-charging infrastructure build-out collaboration across the United States. Under the latest agreement, EVGO and GM will deploy another 500 high-powered DC fast charging stalls, bringing the total to 3,250 stations across the country through 2025.
In the last earnings call, EVGO raised its full-year 2021 view, instilling confidence in fourth-quarter results. The firm expects total 2021 revenues in the band of $20-22 million, up from the prior guidance of $20 million. Network throughput is envisioned in the band of 24-26 GWh, up from the previous guidance of 24 GWh.
On the flip side, EVgo is facing a high cost of sales as it is still in the early stage of development. Elevated general and administrative (G&A) expenses are also expected to have dented its fourth-quarter margins. Cost of sales and G&A expenses witnessed a year-over-year uptick of 38.8% in the last reported quarter. G&A costs in third-quarter 2021 skyrocketed 161% to $20.8 million. Rising operating expenses and cost of sales are likely to have continued in the fourth quarter as well. Also, intense competition from other charging networks is likely to have eaten into some revenues of the firm, thereby impacting fourth-quarter performance.
Snapshot of CHPT Quarterly Results
EVgo’s close peer ChargePoint Holdings (CHPT - Free Report) released fiscal fourth-quarter 2022 results on Mar 2. The company incurred an adjusted loss of 21 cents a share, wider than the Zacks Consensus Estimate of a loss of 16 cents. The bottom line also deteriorated close to 50% from third-quarter 2021. Revenues came in at $80.6 million, surpassing the consensus mark of $76 million and increasing from $65 million registered in third-quarter 2021.
ChargePoint’s total operating expenses for the quarter under discussion summed $97.6 million. As of Jan 31, CHPT’s cash and cash equivalents totaled $315.2 million. CHPT envisions fiscal 2023 revenues in the band of $450-$500 million. The stock currently carries a Zacks Rank #4 (Sell).
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