Chargepoint Holdings (NYSE:CHPT) stock is set to start Friday’s session down some 28% after its out-of-hours profit warning.
The electric vehicle (EV) charging network developer and operator told investors it expects to report third-quarter revenue in the range of $108 million to $113 million, down from a prior estimate of $150 million to $165 million, and short of the prevailing Wall Street consensus of $157 million.
It blamed "overall macroeconomic conditions" and delivery delays in the EV sector, notably in the fleet and commercial segments.
“Our core markets of North America and Europe both came under pressure late in the third quarter, with revenue falling far short of expectations,” Rick Wilmer said in a statement.
“Overall macroeconomic conditions, along with fleet and commercial vehicle delivery delays impacted anticipated deployments with government, auto dealership and workplace customers.”
Wilmer was at the same time appointed as Chargepoint chief executive officer, stepping up after an 18-month stint as chief operating officer, alongside Mansi Khetani who was named interim chief financial officer.
The new CEO told investors: “[We] are committed to significantly improving operational execution to ensure that the company is building a stronger, more resilient business for the benefit of all stakeholders.
“Our first steps are to take an additional non-cash inventory impairment charge related to product transitions and to better align inventory with current demand.”
Wilmer noted that the company is "committed" to generating positive earnings (adjusted EBITDA) in the fourth quarter of 2024.
In New York, ChargePoint stock was down 28.59% to $2.24.