ChargePoint stock slumps 30% after revenue warning, CEO change
By Claudia Assis
Sales to fall 'far short of expectations,' EV charging company says
Shares of ChargePoint Holdings Inc. tanked 30% in the extended session Thursday after the EV charging company lost its top executive and said its third-quarter sales are well off the mark.
"Our core markets of North America and Europe both came under pressure late in the third quarter, with revenue falling far short of expectations," ChargePoint (CHPT) said in a statement.
The company called for third-quarter revenue between $108 million and $113 million, compared with a previous expectation of between $150 million and $165 million. Analysts surveyed by FactSet expect revenue of $157 million for the quarter.
"Overall macroeconomic conditions, along with fleet- and commercial-vehicle delivery delays, impacted anticipated deployments with government, auto dealership and workplace customers," newly appointed Chief Executive Rick Wilmer said in the statement. Wilmer was named CEO on Thursday.
The company said it will report full results and update its year and current-quarter guidance on Dec. 6.
ChargePoint said it had cash and equivalents of about $397 million as of Oct. 31, including $232 million of at-the-market share offering gross proceeds. As of that October date, the company's $150 million revolving credit facility remains undrawn, and there's no drawn debt maturities until 2028, the company said.
The company said in a separate press release that it had appointed Wilmer, its previous chief operating officer, as CEO. Outgoing CEO Pasquale Romano will remain as an adviser "to ensure a seamless transition," it said, without further details.
ChargePoint also named Mansi Khetani its interim chief financial officer. Regarding the CFO change, ChargePoint would only say that former CFO Rex Jackson has departed the company, effective Thursday, and that it will start a search for a permanent executive.
Shares of ChargePoint have lost more than 67% so far this year, contrasting with gains of around 17% for the S&P 500 index SPX.
-Claudia Assis
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
11-16-23 2007ET
Copyright (c) 2023 Dow Jones & Company, Inc.-
Do Stock Splits Really Matter?
-
5 Hot Stocks to Sell Before They Report Earnings
-
Q3 2024: Market Insights on Stocks, Bonds, and the Economy
-
Why We Expect the Job Market’s Slowdown to Renew in 2024
-
Markets Brief: Politics Make a Comeback
-
Pimco’s Ivascyn: Why Investors Should Switch Their 60/40 Portfolio to 40/60
-
What’s Happening in the Markets This Week
-
Is Intel Stock a Buy After Its Big Selloff?
-
PNC Earnings: Net Interest Income Holds Up Relatively Well
-
Charles Schwab Earnings: Despite Sequential Decline, We Still Believe in Medium-Term Growth Story
-
Bank of America Earnings: Encouraging NII Guidance and Expense Control Should Boost Profitability
-
UnitedHealth Earnings: Solid Performance, Outlook Maintained Despite Challenges
-
The Best REITs to Buy
-
2 of the Best Undervalued Stocks to Buy in a Top-Performing Sector
-
BlackRock Earnings: Market Gains Offset Slightly Weaker Inflows as Firm Hits Record AUM
-
Citigroup Earnings: Continued Expense Diligence Will Be Key for Turnaround Efforts