ChargePoint (NYSE:CHPT) reported its second-quarter results for fiscal 2023 after market close yesterday. Overall, the report was a good news, bad news kind of scenario. However, traders are still deciding to move CHPT stock significantly higher today.
ChargePoint is a California-headquartered charging port provider. The company is currently enjoying a positive market backdrop due to the recently passed Inflation Reduction Act. The act provides tax incentives for qualified purchases of electric vehicles (EVs).
These tax incentives should mean more EVs on the roadways in the future, therefore implying greater demand for ChargePoint’s charging stations. However, the company’s Q2 report didn’t reflect these changes, as they hadn’t been implemented yet during the quarter.
ChargePoint’s quarterly earnings loss of 28 cents per share was also worse than Wall Street’s forecast of -25 cents. So, it might seem obvious that CHPT stock should have gone down today. Yet, the stock market often does the opposite of what’s obvious.
What’s Moving CHPT Stock Higher Today?
Granted, it’s disappointing that ChargePoint posted a bigger-than-expected quarterly earnings loss. However, sometimes investors fully expect startup businesses to post losses when they’re still in the early growth stages.
Hence, today’s traders were able to forgive ChargePoint’s earnings loss and instead focus on the company’s growing revenue. In particular, the company reported $108 million in Q2 revenue, beating analysts’ expectation of $103 million.
Looking ahead, ChargePoint expects to generate revenue of between $125 million and $135 million in Q3. That’s roughly in line with what Wall Street analysts are expecting, so there’s no major disappointment on that front.
Meanwhile, ChargePoint President and CEO Pasquale Romano remains confident in the company’s growth prospects:
“We continue to execute on our strategy, as demand continues to grow for our portfolio of industry-leading charging solutions for every vertical and in both North America and Europe.”
CHPT stock is shooting more than 10% higher in early trading today, breaking above the $16 level. Clearly, investors are excited about ChargePoint’s sales growth, leaning bullish on the up-and-coming name today.
On the date of publication, David Moadel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
