Why ChargePoint Stock Is Tanking Thursday

ChargePoint Holdings Inc CHPT shares are trading lower in Thursday's after-hours session after the company reported preliminary results and announced a management transition.

What Happened: ChargePoint appointed Rick Wilmer, who has been COO since July 2022, as its new president and CEO, effective Nov. 16. Exiting CEO Pasquale Romano will remain as an advisor to help with the transition.

Chargepoint also reported preliminary results. ChargePoint said it expects third-quarter revenue of $108 million to $113 million versus previous expectations of $150 million to $165 million. The company said it expects to take a non-cash impairment charge of $42 million resulting in GAAP gross margin of negative 21% to negative 23%.

As of Oct. 31, ChargePoint has $397 million in cash, equivalents and restricted cash. 

"Our core markets of North America and Europe both came under pressure late in the third quarter, with revenue falling far short of expectations. Overall macroeconomic conditions, along with fleet and commercial vehicle delivery delays impacted anticipated deployments with government, auto dealership and workplace customers," Wilmer said.

ChargePoint scheduled its third-quarter financial results for Dec. 6. The company said it will update guidance at that time.

See Also: Applied Materials Q3 Earnings: Revenue And EPS Beat, Strong Guidance, Shares Slide As Criminal Investigation Looms 

CHPT Price Action: ChargePoint shares were down 27% at $2.27 at the time of publication, according to Benzinga Pro.

Photo: Tony Webster from Flickr.