Latest news with #ChargePoint
Yahoo
a day ago
- Business
- Yahoo
Why ChargePoint (CHPT) Shares Are Sliding Today
Shares of EV charging solutions provider ChargePoint Holdings (NYSE:CHPT) fell 22% in the afternoon session after the company reported weak first quarter 2025 results: its revenue, EPS, and EBITDA missed. A 20% decline in Networked charging systems sales was responsible for most of the top line weakness observed in the quarter. Its revenue guidance for next quarter also fell short of Wall Street's estimates. Overall, this quarter could have been better. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy ChargePoint? Access our full analysis report here, it's free. ChargePoint's shares are extremely volatile and have had 75 moves greater than 5% over the last year. But moves this big are rare even for ChargePoint and indicate this news significantly impacted the market's perception of the business. The biggest move we wrote about over the last year was 6 months ago when the stock gained 22.1% on the news that the company reported strong third-quarter results that exceeded analysts' revenue and EBITDA estimates. While sales declined year on year in the Networked charging systems business, the result came in well ahead of consensus estimates, indicating expectations were modest heading into earnings. However, the top line also benefited from strong double-digit growth in the subscription segment, which is more promising. On the other hand, its full-year operating income guidance was lowered, showing that the growth is less profitable than expected. The market seemed to be focused more on the top-line successes, and the stock was up as a result. ChargePoint is down 37.8% since the beginning of the year, and at $0.70 per share, it is trading 70.6% below its 52-week high of $2.37 from July 2024. Investors who bought $1,000 worth of ChargePoint's shares 5 years ago would now be looking at an investment worth $70.88. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
Yahoo
a day ago
- Automotive
- Yahoo
Why ChargePoint Stock Plunged Today
ChargePoint's sales slumped in its fiscal Q1, and missed analyst targets. The company's quarterly loss was twice what Wall Street expected. Management thinks sales will fall farther in fiscal Q2. 10 stocks we like better than ChargePoint › Shares of electric vehicle charging company ChargePoint Holdings (NYSE: CHPT) short-circuited Thursday morning, plunging 19.8% through 10:05 a.m. ET after the company reported twice as big a loss as anticipated for its fiscal 2026 first quarter. Heading into the company's earnings report, analysts had been forecasting that ChargePoint would report losses of $0.06 per share on more than $100 million in sales in the period, which ended April 30. In fact, ChargePoint's losses were $0.12 per share, and sales fell by 8.8% year over year to $97.6 million. The news wasn't all bad. ChargePoint did improve its gross profit margin from 22% a year ago to 29%. Operating costs also declined, which improved operating margins. On the bottom line, quarterly losses were the aforementioned $0.12 per share -- not great, but at least better than the $0.17 per share that ChargePoint lost a year ago. However, part of the improvement was due to ChargePoint issuing a lot of new shares, spreading its losses among 8.4% more shares outstanding. Its GAAP net loss was $57.1 million, down 20% from $71.8 million a year prior. Still and all, investors seem unhappy with the report, and at least part of the reason for that is management's guidance. ChargePoint predicts its fiscal Q2 2026 sales will land in the $90 million to $100 million range. About three-quarters of that range is less than it earned in fiscal Q1, suggesting the strong possibility that revenue will shrink sequentially. That contrasts poorly with the predictions of Wall Street analysts, whose consensus view was that ChargePoint's top line would grow respectably to more than $108 million in fiscal Q2. It almost goes without saying that ChargePoint didn't guide investors to expect any profits in its fiscal Q2. The best the company was willing to offer on that point was that it "remains committed to its plans of achieving positive non-GAAP adjusted EBITDA during a quarter in fiscal year 2026." So, it's targeting sort of a profit in at least one quarter, but it wouldn't say which one. That vague hope hardly seems a good reason to buy ChargePoint stock. Before you buy stock in ChargePoint, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and ChargePoint wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,538!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $869,841!* Now, it's worth noting Stock Advisor's total average return is 789% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why ChargePoint Stock Plunged Today was originally published by The Motley Fool
Yahoo
2 days ago
- Business
- Yahoo
CHPT Q1 Earnings Call: Revenue Misses Expectations Amid Inventory and Market Timing Challenges
EV charging solutions provider ChargePoint Holdings (NYSE:CHPT) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 8.8% year on year to $97.64 million. Its non-GAAP loss of $0.12 per share was significantly below analysts' consensus estimates. Is now the time to buy CHPT? Find out in our full research report (it's free). Revenue: $97.64 million (8.8% year-on-year decline) Adjusted EPS: -$0.12 vs analyst estimates of -$0.06 (significant miss) Revenue Guidance for Q2 CY2025 is $95 million at the midpoint, below analyst estimates of $108.4 million Adjusted EBITDA Margin: -23.3% Market Capitalization: $356.3 million ChargePoint's first quarter results were driven by softer hardware demand and project delays that management attributed to construction and infrastructure readiness issues at customer sites. CEO Rick Wilmer pointed to 'eight figures worth of deals postponed to later quarters, primarily because of construction and infrastructure delays,' and described the inventory build as a deliberate move to maintain reliable partnerships with manufacturing suppliers. While subscription revenue showed year-over-year growth, hardware sales declined significantly. Management also highlighted operational improvements, including reduced operating expenses and a focus on cash management, as proof of disciplined execution. The team took a self-critical stance, noting that results 'could have been better' absent project delays and inventory dynamics. Looking ahead, ChargePoint's outlook centers on a gradual improvement in hardware sales and margin recovery, contingent on the timing of large customer orders and the normalization of inventory levels. Management remains cautious in its near-term guidance, citing a persistent macroeconomic overhang and ongoing site readiness delays. CFO Mansi Khetani stated, 'We have been prudent in our guidance because the macro overhang still exists,' and noted that the company expects a more pronounced revenue recovery in the second half of the year. The company's path to positive adjusted EBITDA by year-end relies on accelerated top-line growth, cost reductions from partnerships with Asian manufacturing firms, and expanded software offerings. Management acknowledged execution risks tied to construction delays and evolving customer demand patterns. ChargePoint's leadership attributed the quarter's performance to postponed customer projects, strategic inventory moves, and transitions in hardware development and supply chain partnerships. Delayed project deployments: Several large hardware deals were postponed due to customer construction and infrastructure delays, shifting revenue recognition into future quarters and impacting near-term sales. Inventory management focus: Inventory levels increased as ChargePoint chose to accept additional finished goods from manufacturing partners to ensure supply reliability, with management expecting normalization by the end of the year. Expansion of manufacturing partnerships: The company added Wistron NeWeb (WNC) as a co-development partner alongside AcBel Polytech, aiming to accelerate hardware innovation and reduce production costs, particularly leveraging Southeast Asia's supply chain strengths. Growing software and subscription traction: Subscription revenue, including software and services, remained resilient, supported by new features such as home charging reimbursement and enhanced fleet management tools, as well as the recent FedRAMP certification enabling government contracts. Shifts in market demand and utilization: Management noted a disconnect between EV sales and charging infrastructure demand, with commercial customers increasingly installing chargers to attract tenants and visitors even without direct correlation to vehicle sales, highlighting a shift in market behavior. ChargePoint's forward guidance hinges on improving hardware availability, cost optimization from new manufacturing relationships, and continued growth in software-driven recurring revenue. Seasonal and macro headwinds: Management expects normal seasonality and lingering macroeconomic uncertainty to weigh on second quarter revenue, with improvement anticipated in the second half as delayed projects and larger deals enter the pipeline. Manufacturing cost reductions: Partnerships with Southeast Asian manufacturers are projected to lower hardware costs and improve gross margin once existing higher-cost inventory is sold through, though near-term margins may remain pressured until inventory normalizes. Subscription and software expansion: Expansion of software offerings and increased adoption of recurring subscription services—bolstered by recent government and enterprise wins—are expected to support more stable revenue streams and improved margin mix over time. In the coming quarters, the StockStory team will be tracking (1) the pace at which delayed commercial and fleet projects convert into recognized revenue, (2) the transition to lower-cost manufacturing and its effect on gross margins, and (3) the growth trajectory of subscription and software-driven revenue streams. The rollout of new hardware partnerships and the impact of government contract wins will also be key indicators of execution. ChargePoint currently trades at a forward price-to-sales ratio of 0.8×. Should you double down or take your chips? See for yourself in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
Yahoo
2 days ago
- Business
- Yahoo
ChargePoint Holdings Inc (CHPT) Q1 2026 Earnings Call Highlights: Record Margins Amid Revenue ...
Revenue: $98 million for Q1, within guidance range. Non-GAAP Gross Margin: 31%, a new high, up 7 percentage points year-on-year. Subscription Gross Margin: Reached a record 60%. Network Charging Systems Revenue: $52 million, 53% of total revenue, down 20% year-on-year. Subscription Revenue: $38 million, 39% of total revenue, up 14% year-on-year. Other Revenue: $8 million, 8% of total revenue, down 31% sequentially. Non-GAAP Operating Expenses: $57 million, up 9% sequentially, down 15% year-on-year. Non-GAAP Adjusted EBITDA Loss: $23 million, compared to $36 million loss in the prior year. Cash on Hand: $196 million at quarter-end. Inventory Balance: Increased by $3 million to $212 million. Guidance for Q2 Revenue: $90 million to $100 million. Warning! GuruFocus has detected 7 Warning Signs with CHPT. Release Date: June 04, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. ChargePoint Holdings Inc (NYSE:CHPT) reported first-quarter revenue of $98 million, aligning with their guidance range. Non-GAAP gross margin reached a new high of 31%, with subscription gross margin climbing to a record 60%, highlighting the strength of their SaaS-focused business model. The partnership with Eaton is expected to drive incremental revenue growth and offers a comprehensive end-to-end EV charging and power management solution. ChargePoint's new AC hardware architecture is set to enter the market at a competitive price point, potentially increasing market share and improving margins. ChargePoint has over 352,000 ports under management globally, with significant growth in Europe and strong partnerships with major automotive companies like General Motors and Mercedes Benz. Network charging systems revenue was flat sequentially and down 20% year-on-year, indicating challenges in this segment. Other revenue was down 31% sequentially and 8% year-on-year, primarily due to lower one-time project revenue. Europe's revenue contribution was lower than normal, largely due to weakness in Germany. Non-GAAP operating expenses increased by 9% sequentially, impacting overall profitability. The company faces macroeconomic headwinds, including tariff uncertainties and cautious customer spending, which could affect future growth. Q: With the Eaton partnership and the new AC product, how should we think about a return to growth on the top line for the new systems? A: Richard Wilmer, CEO: There are both positive and cautious factors at play. Macroeconomic conditions, tariffs, and policy uncertainties are headwinds. However, the Eaton partnership is expected to drive incremental growth. We aim to operationalize this relationship fully by fiscal Q3. Q: Can Eaton help ChargePoint expand into new geographies beyond Europe and North America? A: Richard Wilmer, CEO: While Eaton has the capability to assist in geographic expansion, our current focus is on North America and Europe. These regions offer significant market opportunities, but future expansion into new geographies is possible. Q: What is the expected cadence for inventory reduction, and what is the target inventory level? A: Mansi Khetani, CFO: Inventory reduction will be gradual, with more significant reductions expected in the second half of the year as revenue grows. The balance will depend on factors like sell-through and production mix. Q: How is ChargePoint addressing the macroeconomic uncertainties and tariffs impacting the business? A: Richard Wilmer, CEO: We are managing these challenges by focusing on partnerships like Eaton, which are expected to drive growth. We are also implementing cost management strategies to mitigate the impact of tariffs and economic uncertainties. Q: What are the expectations for revenue growth and margin improvement in the coming quarters? A: Mansi Khetani, CFO: We expect revenue to be between $90 million and $100 million for the next quarter, with potential upside later in the year from new products and partnerships. Gross margins are expected to improve as we manage costs and operationalize new initiatives. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
2 days ago
- Automotive
- Yahoo
ChargePoint Holdings, Inc. (CHPT) Reports Q1 Loss, Lags Revenue Estimates
ChargePoint Holdings, Inc. (CHPT) came out with a quarterly loss of $0.06 per share versus the Zacks Consensus Estimate of a loss of $0.05. This compares to loss of $0.11 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -20%. A quarter ago, it was expected that this company would post a loss of $0.08 per share when it actually produced a loss of $0.06, delivering a surprise of 25%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. ChargePoint , which belongs to the Zacks Automotive - Original Equipment industry, posted revenues of $97.64 million for the quarter ended April 2025, missing the Zacks Consensus Estimate by 2.78%. This compares to year-ago revenues of $107.04 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. ChargePoint shares have lost about 27.9% since the beginning of the year versus the S&P 500's gain of 1.5%. While ChargePoint has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for ChargePoint: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.04 on $107.1 million in revenues for the coming quarter and -$0.16 on $451.05 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Original Equipment is currently in the bottom 46% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, REE Automotive Ltd. (REE), is yet to report results for the quarter ended March 2025. This company is expected to post quarterly loss of $0.78 per share in its upcoming report, which represents a year-over-year change of +60.2%. The consensus EPS estimate for the quarter has been revised 27.1% higher over the last 30 days to the current level. REE Automotive Ltd.'s revenues are expected to be $0.1 million, down 37.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ChargePoint Holdings, Inc. (CHPT) : Free Stock Analysis Report REE Automotive Ltd. (REE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
