The world’s largest electronic vehicle (EV) charging network, ChargePoint Holdings' (NYSE:CHPT) stock is rebounding off its post-SPAC reverse merger lows. The second wave of interest in the EV sector is accelerating as more startups get closer to production led by Rivian Automotive (NASDAQ:RIVN, Lucid Group (NASDAQ:LCID), and Fisker (NYSE:FSR).
The Big Three U.S. automakers are also migrating to electrification and EV versions of its best sellers. Charging networks are also seeing end of year money flow as more EVs means more demand for charging solutions. ChargePoint has grown during and post-pandemic to transform into a larger and more efficient first mover in the charging space.
Shares are still pricing relatively cheap compared to growth trajectories. Prudent investors can look for opportunistic pullbacks in shares of ChargePoint to gain exposure.
Q2 Fiscal 2021 Earnings Release
On Sept. 1, 2021, ChargePoint reported its fiscal Q2 2021 results for the quarter ending June 2021. The Company reported earnings-per-share (EPS) loss of (-$0.29) versus consensus analyst estimates for a loss of (-$0.12), a (-$0.17) miss. Revenues grew 60.5% year-over-year (YoY) to $56.12 million, beating analyst estimates for $49.06 million.
Upside Guidance
The Company raised its Q3 2021 revenue guidance between $60 million to $65 million versus $49.06 million consensus analyst estimates. The Company expects full-year 2022 revenues in the range of $225 million to $235 million versus $206.55 million consensus analyst estimates.
Conference Call Takeaways
ChargePoint CEO Pasquale Romano set the tone,
“We are pleased to share more about the execution against our plan and our strong quarter for ChargePoint. The results from this quarter can be described with one word: scale, scale across our three verticals and scale in both North America and Europe. We are a larger company than we were pre-COVID and growing more quickly.
"This quarter, from both a quarter-over-quarter and year-over-year perspective, exceeds revenue growth rates from the quarter that ended on July of 2019. We had strong commercial execution as businesses of all types continue to invest and we’ll be charging for their customers, employees, and visitors. Interest in EV charging solutions from fleet operators continues to be high.
"In June, we announced the industry’s most comprehensive fleet charging portfolio. Earlier this month, we announced the acquisition of ViriCiti, a leading fleet vehicle management provider. And we expect the addition of team, customers, and technology from this acquisition to further strengthen our reach in eBus and commercial fleet.
"In residential, demand for home charging continues to be strong and our ability to serve all types of residential settings is a differentiator. From a geographical perspective, our North American execution remains strong as businesses continue to recover from the effects of COVID. Europe is growing quickly.
"Our activated port count is up 44% in Europe for the first half of the year versus BloombergNEF European public connector growth of 13% over the same period, and we expect our position in Europe will expand meaningfully following the close of the acquisition of has·to·be post regulatory approval with the addition of their networked ports under management position added to our existing position.
"has·to·be has a talented team, robust technology and an impressive base of customers, including Arval, Audi, GP JOULE, IONITY and Porsche, just to name a few.”
He concluded,
“Q2 residential billings were very strong, up over 79% year-over-year and 43% sequentially. We continue to offer seamless access to EV charging with integrations into leading consumer platforms. This quarter with our strategic partner, Mercedes-Benz, we announced a new benchmark for EV charging in North America with ChargePoint powering Mercedes me Charge vehicle ecosystem to be launched with the all-new EQS luxury sedan and included with all EQ future mobility products for Mercedes-Benz.
"With our software, drivers can seamlessly find, navigate, connect, and securely pay for charging in the vehicle and from the Mercedes me app across the ChargePoint network and roaming partners, including charging in access control environments like workplaces, shopping malls and hotels. Our customer growth continued in the second quarter, building off a strong start to the year where we eclipsed 5,000 customers. We continue to see a steady rebuy rate of well over 60%. We are adding customers quickly while growing with existing customers rapidly.”
CHPT Opportunistic Pullback Levels
Using the rifle charts on the weekly and daily time frames provides the near-term perspective of the playing field for CHPT stock. The weekly rifle chart peaked on the $36.83 Fibonacci (fib) level. Shares collapsed to a low of $17.49 before coiling and forming a market structure low (MSL) buy trigger above $20.16.
The weekly uptrend has a rising 5-period moving average at $24.91 as stochastic oscillates towards the 80-band. The weekly upper Bollinger® Bands sit at $29.31. The daily rifle chart uptrend is stalling as the 5-period MA goes flat at $27.02 followed by the 15-period MA at $25.97. The daily upper BBs sit at $29.35. The daily stochastic peaked just below the 80-band before crossing down.
Prudent investors can look for opportunistic pullbacks at the $25.29 fib, $24.32, $22.61 fib, $20.73 fib, $18.84 fib, and the $17.49 sticky 2.50s level. Upside trajectories range from the $33.01 fib to the $44.55 fib level.