Shares of electric vehicle (EV) charging network operator EVgo (NASDAQ:EVGO) jumped 14.6% in after-hours trading yesterday after the company reported solid beat and raise results. EVgo’s robust quarterly performance was attributed to an increase in the number of EV drivers using its chargers and a boost in its private label unit, eXtend.
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EVgo ended the quarter with 3,200 fast-charging stalls in operation or under construction, an increase of 210 stalls. Plus, the company added more than 82,000 new customer accounts in Q2, bringing the total customer base to 688,000. EVGO even announced that its current CEO Cathy Zoi will retire in November. Her role will be taken by industry veteran and lead independent director, Badar Khan.
Details About EVgo’s Q2FY23 Results
EVgo’s revenue advanced an impressive 457% year-over-year to $50.6 million. This easily beat analysts’ estimates of $29.45 million. The company’s EVgo eXtend unit, which provides charging infrastructure and solutions for businesses, contributed 66% of the revenue growth. Revenue from the unit came in at $33.3 million.
Further, the total amount of electricity provided to charging customers (network throughput) during Q2 grew 14% year-over-year to 24.9 gigawatt-hours.
Additionally, EVgo posted a diluted loss of $0.08 per share, much lower than the analysts’ expected loss of $0.26 per share. In the prior-year quarter, EVgo posted diluted earnings of $0.06 per share.
EVgo’s Revised FY23 Outlook
Based on the solid Q2 performance, EVgo now expects full-year Fiscal 2023 revenue to fall in the range of $120 and $150 million, up from earlier guidance of between $105 million and $150 million.
Moreover, adjusted EBITDA loss (earnings before interest, tax, depreciation, and amortization) is forecasted between $78 to $68 million, narrower than the previous guide of between $78 and $60 million. Even so, the company maintained its fast-charging stall count to be between 3,400 and 4,000 at Fiscal year-end.
Is EVGO a Buy, Sell, or Hold?
On TipRanks, EVgo stock has a Moderate Buy consensus rating based on three Buys, three Holds, and one Sell rating. The average EVgo price target of $8.35 implies 96.9% upside potential from current levels. Meanwhile, EVGO stock has lost 52.4% year-to-date.
