What's Going On With ChargePoint Shares Wednesday?

ChargePoint Holdings, Inc. CHPT shares are trading lower in the premarket session on Wednesday.

Over the last six months, the company’s shares have lost over 70%, while the S&P 500 has gained over 13%.

Yesterday, the company reported fourth-quarter financial results and issued guidance below estimates. 

ChargePoint reported quarterly losses of 23 cents per share, in line with analyst estimates. Non-GAAP gross margin was 22% as compared to 23% in the prior year’s same quarter.

Quarterly sales came in at $115.833 million, which missed the analyst consensus estimate of $118.777 million.

 As of January 31, 2024, cash, cash equivalents, and restricted cash on the balance sheet were $357.8 million. 

ChargePoint’s $150 million revolving credit facility remains undrawn and ChargePoint has no debt maturities until 2028.

“Quarterly milestones included the opening of the Mercedes-Benz HPC NA charging network and receiving FedRAMP authority to operate, which enables ChargePoint to bid for United States government contracts,” said Rick Wilmer, CEO of ChargePoint.

ChargePoint sees first-quarter revenue between $100 million and $110 million, lower than the $126.09 million estimate. At the midpoint, it represents an anticipated decline of 19% year-over-year.

On February 20, ChargePoint and AcBel Polytech, a Kinpo Group subsidiary specializing in power supply manufacturing, entered an agreement to develop EV charging solutions collaboratively.

“This collaboration with AcBel represents a significant milestone in the evolution of our product development strategy, and is a key component of our focus on execution and operational excellence,” Wilmer added.

Price Action: CHPT shares are trading lower by 5.50% to $1.89 premarket on the last check Wednesday.