ChargePoint stock forecast after announcing mixed fiscal Q3 results

By:
on Dec 8, 2021
  • ChargePoint shares edged lower on Tuesday in extended trading.
  • The company announced its most recent quarterly results after markets closed.
  • ChargePoint’s EPS missed expectations while earnings topped estimates.

Shares of the electric vehicle infrastructure company, ChargePoint Holdings Inc. (NYSE:CHPT) edged slightly lower in extended trading on Tuesday. The company announced its most recent quarterly results after markets closed, missing expectations on earnings while beating top-line estimates.

ChargePoint posted FQ3 GAAP earnings per share of -$0.21, missing the consensus analyst expectation of -$0.16. On the other hand, revenue for the quarter surged by more than 78% from the same quarter a year ago to $65.03, slightly surpassing Street expectations by $1.77 million.

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The company also issued solid FQ4 revenue guidance in the range of $73 million to $78 million, exceeding the Street forecast of $72.03 million. In addition, ChargePoint expects its full-year 2022 revenue to be between $235 million and $240 million, topping the average analyst estimate of $231.75 million.

ChargePoint shares have plummeted by more than 40% this year.

ChargePoint looks overvalued

From an investment perspective, ChargePoint shares trade at a steep P/S ratio of 78.54, thus making the stock too expensive for value investors.

However, analysts are optimistic about its growth prospects, forecasting its EPS to improve by more than 93% this year before growing by another 23.10% next year.

Therefore, growth investors could find the stock as an exciting option for their portfolios.

Source – TradingView

Technically, ChargePoint shares seem to be trading within a descending channel formation in the intraday chart. However, the stock recently bounced back to recover from the oversold conditions of the 14-day RSI.

Therefore, investors could target extended rebound profits at about $24.25, or higher at $26.17, while $19.78 and $17.68 are crucial support zones.

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