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Will EVgo (EVGO) Disappoint Investors This Earnings Season?
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EVgo (EVGO - Free Report) is slated to release third-quarter 2022 results on Nov 2 after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s loss per share and revenues is pegged at 16 cents and $13.55 million, respectively.
For the third quarter, the consensus estimate for EVGO’s loss per share has widened by 5 cents in the past 30 days. However, its bottom-line estimates imply growth of 67.35% from the year-ago reported number. Over the trailing four quarters, EVGO surpassed the consensus estimate on two occasions and missed twice, with the average negative surprise being 127.61%. This is depicted in the graph below:
In second-quarter 2022, EVgo incurred an adjusted quarterly loss of 51 cents per share, wider than the Zacks Consensus Estimate of a loss of 11 cents. EVgo’s gross loss of $0.7 million narrowed from the year-ago loss of $1.7 million. It posted revenues of $9.1 million in the quarter, missing the Zacks Consensus Estimate of $10 million, but higher than the year-ago figure of $4.8 million.
Earnings Whispers
Our proven model does not predict an earnings beat for EVgo for the quarter to be reported, as it does not have the right combination of the two key ingredients. A 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: EVGO has an Earnings ESP of -46.88%. This is because the Most Accurate Estimate for loss is wider than the Zacks Consensus Estimate by 8 cents.
Zacks Rank: It currently carries a Zacks Rank of 5 (Strong Sell).
With EV acceptance jumping to record levels, the demand for EV charging grows. EVgo, the largest public fast-charging network for EVs in the United States, is focused on establishing a sustainable EV battery charging infrastructure. As the United States galvanizes for more zero-emission vehicles, EVGO is riding on the strength of its charging network throughput, which is witnessing a record increase in the past several quarters. The trend is likely to have continued in the third quarter. Also, it is has been extending its charging locations and is partnering with major auto players for the same. Moreover, it has formed charger supplier agreements to procure chargers to strengthen its network.
Despite these developments aiding EVGO’s prospects in the third quarter, soaring capital expenditures are expected to have hit margins hard. Expanding its locations has also taken a toll on the general and administrative expenses in the past quarters and is likely to have increased third-quarter operating expenses and widened operating loss. Sawtelle-based EVgo went public on Jul 2. Discouragingly, it hasn’t been able to generate positive EBITDA since its market debut.
Stocks With Favorable Combination
While an earnings beat is uncertain for EVgo, here are a few stocks, which, according to our model, have the right combination of elements to post an earnings beat for the quarter to be reported:
CNH Industrial will release third-quarter 2022 results on Nov 08. The company has an Earnings ESP of +6.25% and a Zacks Rank #3.
The Zacks Consensus Estimate for CNH Industrial’s to-be-reported quarter’s earnings and revenues is pegged at 32 cents per share and $5.33 billion, respectively. CNHI surpassed earnings estimates in all four trailing quarters, with the average surprise being 27.73%.
Rivian Automotive (RIVN - Free Report) will release third-quarter 2022 results on Nov 9. The company has an Earnings ESP of +0.47% and a Zacks Rank #3.
The Zacks Consensus Estimate is pegged at a loss of $1.78 a share for Rivian’s to-be-reported quarter and the same for revenues is pegged at $512.31 million. RIVN surpassed earnings estimates in two of the trailing four quarters and missed in the rest, with the average surprise being a negative 6.68%.
Image: Bigstock
Will EVgo (EVGO) Disappoint Investors This Earnings Season?
EVgo (EVGO - Free Report) is slated to release third-quarter 2022 results on Nov 2 after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s loss per share and revenues is pegged at 16 cents and $13.55 million, respectively.
For the third quarter, the consensus estimate for EVGO’s loss per share has widened by 5 cents in the past 30 days. However, its bottom-line estimates imply growth of 67.35% from the year-ago reported number. Over the trailing four quarters, EVGO surpassed the consensus estimate on two occasions and missed twice, with the average negative surprise being 127.61%. This is depicted in the graph below:
EVgo Inc. Price and EPS Surprise
EVgo Inc. price-eps-surprise | EVgo Inc. Quote
Q2 Highlights
In second-quarter 2022, EVgo incurred an adjusted quarterly loss of 51 cents per share, wider than the Zacks Consensus Estimate of a loss of 11 cents. EVgo’s gross loss of $0.7 million narrowed from the year-ago loss of $1.7 million. It posted revenues of $9.1 million in the quarter, missing the Zacks Consensus Estimate of $10 million, but higher than the year-ago figure of $4.8 million.
Earnings Whispers
Our proven model does not predict an earnings beat for EVgo for the quarter to be reported, as it does not have the right combination of the two key ingredients. A 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: EVGO has an Earnings ESP of -46.88%. This is because the Most Accurate Estimate for loss is wider than the Zacks Consensus Estimate by 8 cents.
Zacks Rank: It currently carries a Zacks Rank of 5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Things to Note
With EV acceptance jumping to record levels, the demand for EV charging grows. EVgo, the largest public fast-charging network for EVs in the United States, is focused on establishing a sustainable EV battery charging infrastructure. As the United States galvanizes for more zero-emission vehicles, EVGO is riding on the strength of its charging network throughput, which is witnessing a record increase in the past several quarters. The trend is likely to have continued in the third quarter. Also, it is has been extending its charging locations and is partnering with major auto players for the same. Moreover, it has formed charger supplier agreements to procure chargers to strengthen its network.
Despite these developments aiding EVGO’s prospects in the third quarter, soaring capital expenditures are expected to have hit margins hard. Expanding its locations has also taken a toll on the general and administrative expenses in the past quarters and is likely to have increased third-quarter operating expenses and widened operating loss. Sawtelle-based EVgo went public on Jul 2. Discouragingly, it hasn’t been able to generate positive EBITDA since its market debut.
Stocks With Favorable Combination
While an earnings beat is uncertain for EVgo, here are a few stocks, which, according to our model, have the right combination of elements to post an earnings beat for the quarter to be reported:
CNH Industrial will release third-quarter 2022 results on Nov 08. The company has an Earnings ESP of +6.25% and a Zacks Rank #3.
The Zacks Consensus Estimate for CNH Industrial’s to-be-reported quarter’s earnings and revenues is pegged at 32 cents per share and $5.33 billion, respectively. CNHI surpassed earnings estimates in all four trailing quarters, with the average surprise being 27.73%.
Rivian Automotive (RIVN - Free Report) will release third-quarter 2022 results on Nov 9. The company has an Earnings ESP of +0.47% and a Zacks Rank #3.
The Zacks Consensus Estimate is pegged at a loss of $1.78 a share for Rivian’s to-be-reported quarter and the same for revenues is pegged at $512.31 million. RIVN surpassed earnings estimates in two of the trailing four quarters and missed in the rest, with the average surprise being a negative 6.68%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.