CHPT - Why ChargePoint Stock Is Down Big Today
2023-09-07 11:14:34 ET
Shares of electric car charging company ChargePoint (NYSE: CHPT) collapsed this morning, tumbling 25% through 10 a.m. ET after a huge earnings miss was reported last night.
Heading into its fiscal Q2 2024, analysts were already pretty downbeat about ChargePoint, forecasting $0.15 per share of losses on sales of $153.2 million -- yet ChargePoint still managed to disappoint. Sales for the quarter were only $150.5 million, and losses were $0.35 per share -- more than twice as bad as expected.
But not all the news was bad. ChargePoint may have missed sales estimates, but it still grew its quarterly revenues an impressive 39% year over year. The problem was that ChargePoint earned only a bare 1% gross profit margin on those sales -- down from 17% a year ago because of a $28 million inventory impairment charge. And this tiny profit was then immediately turned into a loss by operating expenses.
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Why ChargePoint Stock Is Down Big Today