ChargePoint Holdings (NYSE:CHPT) stock tanked more than 13% in Thursday’s extended trade after the company’s fiscal fourth-quarter results missed estimates. The company provides electric vehicle (EV) charging networks and solutions globally.
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ChargePoint’s Q4 net loss of $0.23 per share remained flat year-over-year but came wider than the Street’s estimate of a loss of $0.19 per share. Meanwhile, revenue increased by 93% to $152.8 million but missed analysts’ expectations of $164.6 million.
The upside in the top line can be attributed to higher contributions from Networked charging systems and Subscription revenues. Nevertheless, the reported revenue remained below the company’s guidance range of $160 million to $170 million. This was due to lower demand in North America in December 2022 and supply chain issues for certain hardware products.
Looking forward, ChargePoint expects the fiscal first-quarter revenue to be between $122 million and $132 million, reflecting a year-over-year increase of 56% at the midpoint.
Is CHPT a Buy Now?
ChargePoint targeting multiple lines of business, including fleet, residential, and commercial, is a positive factor. Also, the company’s growing customer base and efforts to expand its charging network indicate long-term growth potential.
Turning to Wall Street, CHPT stock has a Strong Buy consensus rating based on four Buys and one Hold. The average stock price target is $16.60, implying 47.4% upside potential from the current level. Shares of the company have gained about 24% so far in 2023.
