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ChargePoint Holdings CHPT is slated to release second-quarter fiscal 2022 results (ended Jul 31, 2021) on Sep 1, after the closing bell. The company started trading on the NYSE under the ticker CHPT on Mar 1, 2021, following completion of its previously-announced business combination with Switchback Energy Acquisition Corporation. Hence, the fiscal second-quarter results will be its second quarterly earnings report since becoming a publicly traded company.

The Zacks Consensus Estimate is pegged at a loss of 14 cents per share for the quarter.

The company posted wider-than-anticipated loss in the last reported quarter. The Zacks Consensus Estimate for ChargePoint’s fiscal second-quarter loss per share has widened by 2 cents to 14 cents in the past 90 days.

ChargePoint Holdings, Inc. Price and EPS Surprise

ChargePoint

ChargePoint Holdings, Inc. price-eps-surprise | ChargePoint Holdings, Inc. Quote

Earnings Whispers

Our proven Zacks model does not conclusively predict an earnings beat for ChargePoint this time around. The combination of a positive Earnings ESP, and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat. However, that is not the case here as elaborated below.

 Earnings ESP: ChargePoint has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: ChargePoint currently holds a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors at Play

ChargePoint’s fiscal second-quarter top line is anticipated to have benefited from growing demand for the company’s cloud subscription platform and software-defined charging hardware, which are designed to include options for every charging scenario (home, workplace, parking, hospitality, retail, transport fleets, and more). The company expects fiscal second-quarter revenues in the band of $46-$51 million, while the Zacks Consensus Estimate is pegged at $48.69 million.

Amid rising electric vehicle (EV) penetration and sustained recovery of the economy, ChargePoint’s business is likely to have witnessed significant growth during the quarter under discussion. During the quarter under review, ChargePoint introduced the most comprehensive global EV charging solution portfolio available for fleets of all types and sizes. Fleet management software, combined with ChargePoint’s AC and DC fast charging solutions, balance charging costs with operational readiness for light- to heavy-duty vehicles across depot, on-route and at-home charging. In June, ChargePoint partnered with Mercedes to launch the new benchmark in EV charging in North America — Mercedes me Charge — to be rolled out with the all-new EQS all-electric luxury sedan and available in all EQ future mobility products from Mercedes-EQ. Also, in July, the company signed an agreement to acquire has•to•be — an e-mobility provider with a leading European charging software platform. The above series of events is likely to have aided the company’s performance in the to-be-reported quarter.

However, ChargePoint is battling rising operating costs as it is still in the early stages of development. Elevated research and development (R&D) expenses are expected to have dented its fiscal second-quarter margins. Also, intense competition from other charging networks provided by companies, including Tesla TSLA, Volkswagen VWAGY and EVgo EVGO, is likely to have the affected the firm’s revenues, thereby impacting the company’s fiscal second-quarter performance.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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