ChargePoint Q2, Guidance Miss Expectations, Analysts Say: 15% Layoffs Could ‘Create Efficiencies’
ChargePoint Holdings Inc (NYSE:CHPT) shares tanked in early trading on Thursday, after the company reported downbeat second-quarter sales.
The company reported its results amid an exciting earnings season. Here are some key analyst takeaways.
RBC Capital Markets On ChargePoint Holdings
Analyst Christopher Dendrinos maintained a Sector Perform rating while reducing the price target from $3.00 to $2.50.
ChargePoint delivered a revenue miss, although its gross margins were better than expected, driven by “improved hardware margins, cost optimization, and a larger contribution of subscription revs,” Dendrinos said in a note.
The company’s adjusted EBITDA was also slightly better than consensus, “as a result of continued cost discipline,” he added.
Management announced a headcount reduction of another 15%, which should provide around $38 million per year in cost savings, the analyst stated. “Mgmt no longer anticipates reaching breakeven adj. EBITDA by the end of this fiscal year and now estimates this will be achieved in FY2026 (CY2025),” he further wrote.
Benchmark On ChargePoint Holdings
Analyst Mickey Legg reiterated a Buy rating and price target of $3.
ChargePoint reported fiscal second-quarter revenues of $109 million, missing consensus of …
Full story available on Benzinga.com