CHPT - As ChargePoint (CHPT) stock plummets are EVGO and Blink good buys?
2023-11-17 11:18:02 ET
ChargePoint (NASDAQ: CHPT) stock price crashed hard on Friday after the company published a weak preliminary statement. As I wrote earlier , CHPT also lost its Chief Executive and Chief Finance Officer as woes in the industry continued. In all, ChargePoint shares have plummeted by over 85% this year.
ChargePoint woes continues
In a surprise announcement, ChargePoint warned that its business was going through major headwinds. It noted that its business came under pressure in the tail end of its third quarter because of macroeconomic issues. It also cited fleet and equipment delays for its business in the US and in Europe.
As a result, the company decided to downgrade its revenue and profitability estimates. It expects that its revenue for the third quarter will come in at between $108 million and $113 million. It will also make a non-cash impairment charge of $42 million.
ChargePoint has gone through various woes in the past few months. For example, it recently announced that it would dilute its shareholders by raising additional capital. There is also a chance that the company will need more money in 2024 as the cash burn continues.
Blink Charging and EVGo results
CHPT vs BLNK vs EVGO stocks
Now, the question is whether it makes sense to invest in EVGo and Blink Charging, two companies in its industry. In its most recent results, Blink Charging said that its total revenue in Q3 jumped by 150% to $43.4 million. Its revenue in the first nine months of the year totaled $98 million.
The company also decided to boost its revenue target to between $128 million and $133 million, higher than the previous estimate of $110 million and $120 million. These results explain why Blink Charging stock price has jumped by over 80% from its lowest point this year.
Meanwhile, EVGo also published strong financial results. Its revenue rose by 234% to over $35 million, helped by the rising charging revenue. It also expanded its gross margins to 26.4% from the previous 19.1%. Like Blink Charging, EVGo boosted its full-year guidance to between $148 million and $158 million. It also hiked its EBITDA guidance to between -$66 million and -$62 million.
EVGo and Blink Charging results mean that the two companies have diverged from ChargePoint, which is going through a rough patch. Therefore, with the demand for charging rising, the risk-reward for EVGO and BLNK seems favourable for now.
The key risk for the two companies will continue executing well and whether they will need additional capital in 2024. The other risk is that these firms are likely going through the same challenges that ChargePoint is facing.
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