Shares of ChargePoint (CHPT) sank in after-hours trading after the EV infrastructure company reported earnings for its second quarter of Fiscal Year 2025 and provided disappointing guidance. Earnings per share came in at -$0.16, which missed analysts’ consensus estimate of -$0.15 per share.
Sales decreased by 27.6% year-over-year, with revenue hitting $109 million. This missed analysts’ expectations of $113.5 million.
Looking forward, management now expects revenue for Q3 2024 to be between $85 million to $95 million. For reference, the analysts’ consensus was $135.9 million. Furthermore, ChargePoint anticipates becoming adjusted EBITDA positive by Fiscal Year 2026 compared to its previous forecast of Fiscal Year 2024.
Hedge Fund Activity
Interestingly, when it comes to “smart money,” money managers were growing more confident in CHPT stock. Indeed, hedge funds increased their holdings in the stock by 792,400 shares in the past quarter. As a result, they have a Positive confidence signal, as demonstrated below. Nevertheless, this may no longer be the case following today’s results.
Is CHPT Stock a Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on CHPT stock based on six Buys, five Holds, and zero Sells assigned in the past three months. After a 77% decline in its share price over the past year, the average CHPT price target of $3.09 per share implies 81.76% upside potential. However, like the hedge fund managers, analysts are likely to change their outlook on the stock after seeing today’s underwhelming guidance.
