CAMPBELL, CA - ChargePoint (NYSE:CHPT) Holdings Inc., a leader in the electric vehicle charging network sector, experienced a dramatic drop in its stock price today. In after-hours trading, shares fell sharply by 27.5% to $2.27, following a significant downward revision of the company's third-quarter revenue forecast.
The California-based company announced that it had adjusted its third-quarter revenue expectations from the previously projected range of $150 million to $165 million down to between $108 million and $113 million. This adjustment was attributed to a combination of macroeconomic factors and delivery delays impacting key customers, including government entities, auto dealerships, and businesses.
This latest financial update comes as ChargePoint has been navigating a challenging year, with its stock closing today at $3.13, marking a steep decline from its earlier valuation.
Alongside these financial developments, ChargePoint also announced changes within its executive leadership. Rick Wilmer has taken over as CEO, succeeding Pasquale Romano who had been at the helm since 2011. Concurrently, the company is on the hunt for a new CFO following Rex Jackson's departure and has named Mansi Khetani as the interim CFO.
InvestingPro Insights
Drawing on real-time data from InvestingPro, ChargePoint Holdings Inc. has a market cap of $1120M and a P/E ratio of -2.97, suggesting a lack of profitability. The company's revenue for the last twelve months as of Q2 2024 stands at $558.69M, which is a growth of 67.12% from the previous year. However, the company's return on assets for the same period is at -34.79%, indicating a poor return on assets.
In line with these metrics, InvestingPro Tips highlight a few key points. Firstly, analysts do not anticipate the company will be profitable this year, which aligns with the negative P/E ratio. Secondly, the company's stock has experienced significant volatility, with a notable return over the last week but a substantial decline over the last three months. Lastly, despite the company's liquid assets exceeding short-term obligations, it operates with a moderate level of debt.
These insights and many more are available on InvestingPro, which offers a comprehensive suite of investing tools and tips for investors. For example, there are 19 additional tips available for ChargePoint Holdings Inc. on InvestingPro, providing a more in-depth understanding of the company's financial health and market performance.
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