Al Root
Electric-vehicle-charging company EVgo posted solid results and good guidance.
Shares fell, though. Earnings just aren't what are on investors' minds right now.
EVgo on Tuesday reported a fourth-quarter adjusted loss before interest, taxes, amortization, and depreciation, or Ebitda, of $8.4 million on sales of almost $68 million. Wall Street was looking for an Ebitda loss of about $8.7 million on sales of $69 million, according to FactSet.
For the full year, sales were about $257 million, up from $161 million in 2023.
Looking ahead, EVgo expects sales of $340 million to $380 million in 2025. The $360 million midpoint is higher than Wall Street's current projections of $353 million.
Ebitda should come in between negative $5 million and positive $10 million. The midpoint, at almost $3 million, is a little better than Wall Street projects.
EVgo stock was up initially in premarket trading. Gains faded, however, and the stock was off 5.1% in early trading at $2.32, while a tariff-related selloff hit most stocks. The S&P 500 and Dow Jones Industrial Average were down about 1.5%.
Aside from tariffs, shares might not have reacted more positively because investor sentiment toward EV-charging stocks is terrible. Coming into Tuesday, EVgo stock has fallen almost 60% since the Nov. 5 presidential election.
President Donald Trump has promised to eliminate spending and incentives tied to EVs started by former President Biden, which has spelled disaster for several EV-charging stocks. Shares of ChargePoint Holdings, Wallbox, and Blink Charging have dropped about 55% on average since Nov. 5.
The four EV-charging stocks aren't profitable yet. The road to sustainable profits looks harder without federal support.
Write to Al Root at allen.root@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
March 04, 2025 11:07 ET (16:07 GMT)
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