Analysts Have Made A Financial Statement On ChargePoint Holdings, Inc.'s (NYSE:CHPT) First-Quarter Report

Investors in ChargePoint Holdings, Inc. (NYSE:CHPT) had a good week, as its shares rose 7.1% to close at US$1.80 following the release of its first-quarter results. Revenues of US$107m were in line with expectations, although statutory losses per share were US$0.17, some 11% smaller than was expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for ChargePoint Holdings

Taking into account the latest results, the most recent consensus for ChargePoint Holdings from 19 analysts is for revenues of US$516.5m in 2025. If met, it would imply a satisfactory 6.8% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 48% to US$0.55. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$548.4m and losses of US$0.58 per share in 2025. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for this year.

The consensus price target was broadly unchanged at US$3.11, implying that the business is performing roughly in line with expectations, despite adjustments to both revenue and earnings estimates. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic ChargePoint Holdings analyst has a price target of US$6.00 per share, while the most pessimistic values it at US$1.50. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that ChargePoint Holdings' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 9.2% growth on an annualised basis. This is compared to a historical growth rate of 38% over the past three years. Compare this to the 135 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 8.1% per year. So it's pretty clear that, while ChargePoint Holdings' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. Even so, earnings are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for ChargePoint Holdings going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 5 warning signs for ChargePoint Holdings (1 can't be ignored!) that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.