ChargePoint Earnings Await – (CHPT) Stock Struggling To Find Footing

ChargePoint Holdings stock (NYSE: CHPT) is trading at $8.30 ahead of today's earnings report, down 0.6% in the pre-market after a 5.83% gain on Wednesday. CHPT holders will be looking for a reversal of the broader trend that has engulfed the stock through the year, after a 62.72% decline since the turn of the year.

The street's expectations for ChargePoint's earnings per share are a loss of $1.31. This represents an improvement compared to the $1.94 loss reported in the same period last year, yet remains a long way from profitability.

Revenue expectations are set at $96.51 million, a projected decrease of 3.11% year-over-year. These figures highlight part of the pressures that the company faces in what is a competitive and evolving EV charging market.

ChargePoint has navigated a turbulent period leading up to this earnings release. The company recently received a non-compliance notice from the New York Stock Exchange (NYSE) due to its stock price falling below $1.00, a situation the company actively addressed with a 1-for-20 reverse sock split at the end of July.

However, ChargePoint has also taken steps to strengthen its financial position. The completion of a privately negotiated exchange of $329 million in Convertible Senior Notes due in 2028 reduced outstanding debt by $172 million and lowered annual interest expenses by approximately $10 million. Extending the debt maturity to 2030 provides the company with additional financial flexibility.

Despite these efforts, analyst sentiment remains cautious. ChargePoint's stock holds an average recommendation of “Reduce” from eleven research firms, with a consensus 12-month price target of $11.69. The ratings include three “sell,” seven “hold,” and one “buy” recommendation, reflecting a mixed outlook on the company's future performance.

Given the backdrop of financial restructuring, strategic reorganization, and analyst skepticism, the upcoming earnings report could be crucial for ChargePoint. Markets will be closely scrutinizing the earnings report for signs of revenue stabilization, cost reduction, and improved operational efficiency. Positive surprises could provide a much-needed boost to confidence and potentially reverse the stock's downward trend, with any further disappointments likely to exacerbate existing concerns and lead to additional pressure on the stock.