ChargePoint (CHPT) to Post Q1 Earnings: What's in the Cards?

Zacks Equity Research
·4-min read

ChargePoint Holdings, Inc. CHPT is slated to release first-quarter fiscal 2025 results on Jun 5, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s loss per share and revenues is pegged at 12 cents and $106.09 million, respectively.

For the fiscal first quarter, the consensus estimate for the electric vehicle (EV) charging company’s loss per share has widened by a penny in the past 90 days. Its bottom-line estimates imply an increase of 20% from the year-ago reported number.

The Zacks Consensus Estimate for ChargePoint’s quarterly revenues suggests an 18.41% year-over-year decline. Over the trailing four quarters, it surpassed earnings estimates on one occasion and missed thrice, the average negative surprise being 26.33%. This is depicted in the graph below:

ChargePoint Holdings, Inc. Price and EPS Surprise

ChargePoint Holdings, Inc. Price and EPS Surprise
ChargePoint Holdings, Inc. Price and EPS Surprise

ChargePoint Holdings, Inc. price-eps-surprise | ChargePoint Holdings, Inc. Quote

Q4 Highlights

In fourth-quarter fiscal 2024, ChargePoint reported a loss of 13 cents per share, wider than the Zacks Consensus Estimate of a loss of 12 cents. The company had incurred a loss of 13 cents per share in the year-ago quarter. CHPT reported net sales of $116 million, missing the Zacks Consensus Estimate of $126 million. The top line decreased 17.6% year over year.

Factors at Play

In January, ChargePoint reduced its global workforce by approximately 12%, which is expected to reduce its annual non-GAAP operating expenses by $33 million. The company is focusing on software solutions for all EV charging use cases because the company’s software margins are considerably better than hardware. In February, CHPT signed an agreement with AcBel, a leading power supply manufacturer, to jointly develop future hardware to improve its speed to market. A focus on reducing expenses and improving margin, as well as lowering its hardware time to market, is likely to have benefited ChargePoint in the to-be-reported quarter.

Discouragingly, the uncertainty around the pace of EV adoption is making institutions wary about the need for EV charging infrastructure. As a result, they are not buying as freely and quickly as they did last year. Lower demand might have taken a toll on the company’s top-line growth. CHPT expects first-quarter fiscal 2025 revenues between $100 million and $110 million, representing typical winter construction slowdowns and historically lower first-quarter contributions to annual revenues. Lower revenues are likely to have hurt the company’s top-line growth.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for ChargePoint this earnings season, as it does not have the right combination of the two key ingredients. A positive Earnings ESP, combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat.

Earnings ESP: ChargePoint has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is pegged on par with 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: CHPT currently carries a Zacks Rank #3.

Earnings Whispers for Other Auto Stocks

Thor Industries, Inc. THO has an Earnings ESP of 0.00% and carries a Zacks Rank #4 (Sell) at present. It is slated to release third-quarter fiscal 2024 results on Jun 5. The Zacks Consensus Estimate for THO’s earnings per share is pegged at $1.92.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Thor surpassed earnings estimates in three of the trailing four quarters and missed once, delivering an average surprise of 35.80%.

REV Group, Inc. REVG has an Earnings ESP of 0.00% and carries a Zacks Rank #3 at present. It is slated to release second-quarter fiscal 2024 results on Jun 5. The Zacks Consensus Estimate for REVG’s earnings per is pegged at 28 cents.

REV surpassed earnings estimates in each of the trailing four quarters, delivering an average surprise of 85.08%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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

Thor Industries, Inc. (THO) : Free Stock Analysis Report

REV Group, Inc. (REVG) : Free Stock Analysis Report

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