ChargePoint surges after revenue and margins exceed expectations

ChargePoint is rallying after reporting a mixed but positive set of earnings after the close on Tuesday.

The EV charging station company reported revenues of $101.9 million in the fourth quarter, a little ahead of expectations. Though its adjusted loss per share of $0.14 was slightly steeper than the Street anticipated, the company has much more cash on hand — nearly $225 million — than the $180 million analysts penciled in. Its gross margin of 28% also came in well above estimates.

This is heavily shorted company, with about 30% of float sold short as of mid-February. This may be contributing to the magnitude of the market reaction to a mixed to positive report.

Going forward, the company faces policy headwinds stemming from President Donald Trump’s decision to stop spending money on the EV infrastructure build-out. Separately, Bloomberg Intelligence analysts Steve Man and Peter Lau also wrote that the company is losing market share to smaller charging networks.

But management still “remains committed” to its plan to post a quarter of positive adjusted earnings before interest, taxes, depreciation, and amortization this year. For its first quarter, ChargePoint estimates that revenues will come in between $95 million and $105 million, the midpoint of which is modestly below the Street’s projection.

“ChargePoint’s target of reaching positive Ebitda by this year appears overly ambitious as charging infrastructure growth may face challenges under the Trump administration,” Man and Lau wrote. “The equipment supplier also faces pricing competition vs. cheaper new entrants and Chinese rivals, as the technology continues to commoditize, eroding its market share.”