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Factors Setting the Tone for ChargePoint's (CHPT) Q1 Earnings
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ChargePoint Holdings (CHPT - Free Report) is slated to release first-quarter fiscal 2023 results (ended Apr 30, 2022) on May 31, after the closing bell. The Zacks Consensus Estimate for the quarter’s loss and revenues is pegged at 18 cents per share and $75.1 million, respectively.
The Zacks Consensus Estimate for ChargePoint’s fiscal first-quarter loss per share has deteriorated by 1 cent in the past seven days. The bottom-line projection indicates no significant change from the year-ago quarter numbers.
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 21 cents a share, wider than the consensus mark of 16 cents. Over the trailing four quarters, the company missed estimates thrice, with the average negative surprise being 25.5%.
During the first quarter of fiscal 2023, ChargePoint teamed up with Toyota (TM - Free Report) to provide accessible and convenient public and home EV charging for Toyota’s new battery-electric bZ4X SUV owners/drivers.
Per the agreement with Toyota, ChargePoint will provide multiple charging facilities to enhance the convenience for bZ4X drivers. To ensure that drivers can charge whenever required, ChargePoint will provide access to more than 80% of charging spots in North America.
ChargePoint also partnered with European fleet delivery player Picnic to launch its cloud-based charging solutions for Picnic’s electric delivery fleet, thereby further expanding its reach in the European fleet market. Per the agreement, Picnic will be able to use ChargePoint’s advanced software solutions, which include charge management, range forecasting and streamlined delivery route and schedule planning, thereby simplifying the management of Picnic’s operations.
ChargePoint and automotive fleet management player Wheels Donlen also entered into a partnership to provide the latter’s customers with both fleet mobility and home-charging solutions. As part of the deal, Wheels Donlen customers will have access to ChargePoint’s nationwide charging network as well as its at-home charging hardware and cloud software solutions.
ChargePoint also announced a strategic partnership with Sonepar in France. The partnership will include the deployment of more than 1,400 charging stations in Sonepar’s France network by mid-2022. ChargePoint also joined forces with Gatik to create an electric ecosystem for driverless electric medium-duty trucks.
Things to Note
ChargePoint’s fiscal first-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 first-quarter revenues in the band of $72-$77 million, indicating a year-over-year increase of 84% from the midpoint of the guided range and well within the consensus mark.
The top line is likely to have been boosted by 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 first-quarter fiscal 2023 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. The various partnerships entered upon during the first fiscal quarter of 2023 are also set to bolster its upcoming results.
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 first-quarter margins. In the last reported quarter, operating costs escalated to $97.6 million from $44.2 million incurred in the comparable year-ago period.
For fiscal 2023, ChargePoint envisions operating expenses in the range of $350-$370 million, representing a surge of around 50% at the midpoint of the guidance on a year-over-year basis. Operating expenses for the to-be-reported quarter are also likely to rise year over year. Such elevated spending levels, especially when the revenue base is low, are 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 +3.25%. This is because the Most Accurate Estimate for loss is pegged 1 cent lower than 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 4 (Sell).
Blink Chargingreleased its first-quarter 2022 results on May 9. The EV charging firm incurred a quarterly loss of 36 cents per share, narrower than the Zacks Consensus Estimate of a loss of 40 cents but wider than the year-ago quarter’s loss of 18 cents per share. Total revenues of $9.8 million surpassed the Zacks Consensus Estimate by 52.72%. The top line also skyrocketed 339% on a year-over-year basis.
Product sales, which constitute 82% of BLNK’s total revenues, soared 382% from the comparable year-ago quarter. Service revenues jumped 346% year over year. Other revenues edged up 8%. As of Mar 31, Blink Charging had cash and marketable securities of $161.9 million.
Image: Bigstock
Factors Setting the Tone for ChargePoint's (CHPT) Q1 Earnings
ChargePoint Holdings (CHPT - Free Report) is slated to release first-quarter fiscal 2023 results (ended Apr 30, 2022) on May 31, after the closing bell. The Zacks Consensus Estimate for the quarter’s loss and revenues is pegged at 18 cents per share and $75.1 million, respectively.
The Zacks Consensus Estimate for ChargePoint’s fiscal first-quarter loss per share has deteriorated by 1 cent in the past seven days. The bottom-line projection indicates no significant change from the year-ago quarter numbers.
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 21 cents a share, wider than the consensus mark of 16 cents. Over the trailing four quarters, the company missed estimates thrice, with the average negative surprise being 25.5%.
ChargePoint Holdings, Inc. Price and EPS Surprise
ChargePoint Holdings, Inc. price-eps-surprise | ChargePoint Holdings, Inc. Quote
Key Partnerships Inked During Q1
During the first quarter of fiscal 2023, ChargePoint teamed up with Toyota (TM - Free Report) to provide accessible and convenient public and home EV charging for Toyota’s new battery-electric bZ4X SUV owners/drivers.
Per the agreement with Toyota, ChargePoint will provide multiple charging facilities to enhance the convenience for bZ4X drivers. To ensure that drivers can charge whenever required, ChargePoint will provide access to more than 80% of charging spots in North America.
ChargePoint also partnered with European fleet delivery player Picnic to launch its cloud-based charging solutions for Picnic’s electric delivery fleet, thereby further expanding its reach in the European fleet market. Per the agreement, Picnic will be able to use ChargePoint’s advanced software solutions, which include charge management, range forecasting and streamlined delivery route and schedule planning, thereby simplifying the management of Picnic’s operations.
ChargePoint and automotive fleet management player Wheels Donlen also entered into a partnership to provide the latter’s customers with both fleet mobility and home-charging solutions. As part of the deal, Wheels Donlen customers will have access to ChargePoint’s nationwide charging network as well as its at-home charging hardware and cloud software solutions.
ChargePoint also announced a strategic partnership with Sonepar in France. The partnership will include the deployment of more than 1,400 charging stations in Sonepar’s France network by mid-2022. ChargePoint also joined forces with Gatik to create an electric ecosystem for driverless electric medium-duty trucks.
Things to Note
ChargePoint’s fiscal first-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 first-quarter revenues in the band of $72-$77 million, indicating a year-over-year increase of 84% from the midpoint of the guided range and well within the consensus mark.
The top line is likely to have been boosted by 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 first-quarter fiscal 2023 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. The various partnerships entered upon during the first fiscal quarter of 2023 are also set to bolster its upcoming results.
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 first-quarter margins. In the last reported quarter, operating costs escalated to $97.6 million from $44.2 million incurred in the comparable year-ago period.
For fiscal 2023, ChargePoint envisions operating expenses in the range of $350-$370 million, representing a surge of around 50% at the midpoint of the guidance on a year-over-year basis. Operating expenses for the to-be-reported quarter are also likely to rise year over year. Such elevated spending levels, especially when the revenue base is low, are 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 +3.25%. This is because the Most Accurate Estimate for loss is pegged 1 cent lower than 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 4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings of BLNK
Blink Chargingreleased its first-quarter 2022 results on May 9. The EV charging firm incurred a quarterly loss of 36 cents per share, narrower than the Zacks Consensus Estimate of a loss of 40 cents but wider than the year-ago quarter’s loss of 18 cents per share. Total revenues of $9.8 million surpassed the Zacks Consensus Estimate by 52.72%. The top line also skyrocketed 339% on a year-over-year basis.
Product sales, which constitute 82% of BLNK’s total revenues, soared 382% from the comparable year-ago quarter. Service revenues jumped 346% year over year. Other revenues edged up 8%. As of Mar 31, Blink Charging had cash and marketable securities of $161.9 million.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.