ChargePoint Holdings (NYSE:CHPT) saw a 6.5% increase in its stock Thursday morning, even as the EV charging company reported a 3Q miss.
Rivian's 3Q revenues hit $110 million, marking a 12% decline compared to the previous year. The company's non-GAAP gross margin of (18%) was largely due to a $42 million impact from an inventory impairment charge. Their reported EPS of ($0.43) fell $0.13 below the analysts' estimate of ($0.30).
Both B.Riley and Evercore ISI cut estimates on the stock.
B.Riley went a step further, downgrading the EV maker to a Neutral rating (From Buy), adding in a note, “Given management’s lack of clarity around its cost-cutting plan and 4FQ24 guidance, we believe there is a lack of positive catalysts in the near term for the stock to achieve positive EBITDA by the end of CY24.”
“ChargePoint’s third quarter execution came up far short of its goals in the face of continued challenging macroeconomic conditions and execution challenges,” said ChargePoint CEO, Rick Wilmer.
“Though the quarter overall did not meet expectations, we did demonstrate how we continue to empower the entire EV ecosystem, across hardware and software, and we fortified our balance sheet, which leaves us well capitalized to execute on our strategy.” Wilmer added.
Shares of CHPT are up 6.5% in morning trading on Thursday.