VLTA - Why Volta Stock Was Falling Earlier Today
Shares of Volta (NYSE: VLTA) were down 12.4% as of 12:52 p.m. ET on Thursday. The electric charging station provider announced new measures yesterday to cut costs amid deteriorating conditions in the marketplace. Management also withdrew its previous full-year revenue outlook. The sell-off today brings the stock's year-to-date drop to more than 81%.
Volta reported strong revenue growth in the previous quarter. Revenue more than doubled year over year to more than $15 million, but worsening conditions for the industry caused management to lower its third-quarter revenue guidance to between $13.5 million and $14.5 million. This is down from the range of $17 million to $18 million provided in the last earnings report.
The weakening economic conditions come after Volta already reported a $276 million loss over the last four quarters. To save money and shore up the bottom line, the company is reducing its workforce by 10%, which comes on top of an 18% cut since June 1. It's also looking to consolidate marketing and administrative costs, limit the use of outside consultants, and tighten up business processes.
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Why Volta Stock Was Falling Earlier Today