Shares of ChargePoint (CHPT) jumped in after-hours trading after the EV infrastructure company reported earnings for its third quarter of Fiscal Year 2025. Earnings per share came in at -$0.18, which missed analysts’ consensus estimate of -$0.17 per share. Sales decreased by 9.7% year-over-year, with revenue hitting $99.61 million. Still, this beat analysts’ expectations of $89.77 million.
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This was driven by a decline in Networked charging systems revenue, which fell 29% year-over-year to $52.7 million. However, this was partially offset by a 19% increase in subscription revenue to $36.4 million.
Rick Wilmer, the CEO of ChargePoint, said that he was encouraged by record EV sales in the industry as the firm continues to see network utilization driving the need for more charging infrastructure. He also stated that third-quarter results exceeded their expectations thanks to a focus on operational excellence and rigorous cash management.
2025 Outlook
Looking forward, management now expects revenue for Q4 2025 to be between $95 million and $105 million. For reference, the analysts’ consensus was $101 million. Furthermore, ChargePoint anticipates becoming adjusted EBITDA positive by Fiscal Year 2026, which was updated last quarter from its previous forecast of Fiscal Year 2024.
Interestingly, shares soared despite the earnings and midpoint guidance miss. It seems like investors are giving more weight to CHPT’s huge revenue beat. It could also be that since shares have declined during the past three months heading into earnings, investors already priced in underwhelming guidance. Therefore, today’s results created a “buy-the-news” event.
Is CHPT Stock a Buy?
Turning to Wall Street, analysts have a Hold consensus rating on CHPT stock based on three Buys, five Holds, and two Sells assigned in the past three months. After a 41% decline in its share price over the past year, the average CHPT price target of $2,28 per share implies 94% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
