What Happened?
Shares of EV charging infrastructure provider Blink Charging (NASDAQ:BLNK) fell 21.9% in the afternoon session after the company reported weak third-quarter earnings. Full-year revenue guidance missed as sales fell short of Wall Street's estimates during the quarter. The top line was particularly impacted by a sharp deceleration in DC fast charger sales, given the tough comparison relative to the previous year. This trend was mostly concentrated in the automotive dealerships. As a result, the company plans to replace dealership sales by focusing on other sales verticals, though this might take some time to be reflected on the top line. Profitability, however, showed some resilience as the company managed to reduce its cash burn by 27% year-over-year and 50% year till date, driven by cost optimization efforts and a shift toward higher margin Level 2 chargers. Overall, this was a weaker quarter.
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What The Market Is Telling Us
Blink Charging’s shares are extremely volatile and have had 87 moves greater than 5% over the last year. But moves this big are rare even for Blink Charging and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock dropped 19% on the news that the company reported weak second quarter earnings. Its revenue unfortunately missed, and its EPS fell short of Wall Street's estimates. Gross margin also declined significantly, and the company continued to burn cash. Overall, this was a mediocre quarter for Blink Charging.
Blink Charging is down 47.3% since the beginning of the year, and at $1.67 per share, it is trading 62.4% below its 52-week high of $4.44 from November 2023. Investors who bought $1,000 worth of Blink Charging’s shares 5 years ago would now be looking at an investment worth $917.58.
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