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Notably, the company's still expected to be unprofitable (on adjusted and GAAP terms) through FY25 as it scales. Therefore, we believe the bifurcation between the Street's optimism and management's outlook has also recently led to CHPT stock weakness. The company is estimated to post FY23 (ending January 2023) revenue of $462.94M, up 91% YoY.īut the Street's consensus is less optimistic than management's guidance of $475M (midpoint). Notwithstanding, ChargePoint's revenue growth is expected to improve in H2'22. However, it represents a decline of 90.3% growth in FQ4. The consensus estimates suggest that ChargePoint could report revenue of $76.05M in FQ1, up 87.7%.

#CHARGE POINT EARNINGS SERIES#

At least ChargePoint has a viable commercial product, unlike QuantumScape ( QS), which we discussed in a series of articles. Nonetheless, we can cut CEO Pasquale Romano and his team some slack, given the nascent growth of the EV industry. Furthermore, the company is still unprofitable, despite a 15-year operating history. But, we think that's necessary, given its 'vertical rocketship-esque' gains in 2020. The market has been extremely harsh over high-growth but unprofitable EV charging pure-plays like CHPT. Market Needs To Reset Expectations On Unprofitable ChargePointĬhargePoint revenue change % and adjusted EBIT margins % consensus estimates (S&P Cap IQ)ĬhargePoint GAAP EPS consensus estimates (S&P Cap IQ) Therefore, it could mark the end of a significant downtrend in CHPT stock since July 2021 as it went into a 'negative flow.' Our analysis is corroborated by our conviction that the Invesco QQQ ETF ( QQQ ) could also be near its bottom ( we discussed this in a recent article ).Īccordingly, we revise our rating on CHPT stock from Hold to Buy, with a price target (PT) of $17 (implied upside of 44%). Notably, our analysis of CHPT stock price action has shown constructive signs of a potentially potent double bottom.

It has also lost more than 40% since our previous article (Hold rating), as we cautioned investors to wait. The market digested its significant but unsustainable gains fueled by the Fed's easy monetary policy.

Investors' expectations over unprofitable high-growth stocks like CHPT have been reset after the significant battering over the past six months.ĬHPT stock has lost more than 75% of its value from its massive bull trap in 2020. ( NYSE: CHPT) will report its FQ1 earnings release on May 31. Robertcicchetti/iStock Editorial via Getty Images Investment ThesisĬhargePoint Holdings, Inc.

Charge point earnings